Fraud deterrence for secure transactions

ABSTRACT

An illustrative fraud deterrent method includes presenting an identity verification option for a first website displayed in a web-browser, the option including offering a login to a third-party website, unrelated to the first website. The method further includes receiving login information for a first user account on the third-party website and verifying the login information through a verification service associated with the third-party website, to verify that the login information is valid for the first user account, identified by the login information. The method additionally includes verifying an identity at the first website, responsive to the verification.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of Ser. No. 18/095,237, filed Jan.10, 2023, which is a continuation of Ser. No. 17/677,581, filed Feb. 22,2022, now U.S. Pat. No. 11,551,215, issued Jan. 10, 2023, which is acontinuation of Ser. No. 17/201,835 filed Mar. 15, 2021, now U.S. Pat.No. 11,257,080 issued Feb. 22, 2022, which is a continuation of Ser. No.15/404,184, filed Jan. 11, 2017, now U.S. Pat. No. 10,949,851, issuedMar. 16, 2021 which is a continuation of U.S. Ser. No. 14/873,165 filedOct. 1, 2015 entitled “Fraud Deterrence for Electronic Transactions”,now abandoned and is a continuation-in-part of U.S. Ser. No. 12/124,144filed May 20, 2008, now U.S. Pat. No. 10,853,855. Said U.S. Ser. No.14/873,165 is a continuation of U.S. Ser. No. 13/286,211 filed Oct. 31,2011 entitled “Fraud Deterrence for Electronic Transactions”, nowabandoned, which is a continuation of U.S. Ser. No. 12/115,538, filedMay 5, 2008, now U.S. Pat. No. 8,078,515, issued Dec. 13, 2011 andentitled “Systems and methods for facilitating electronic transactionsand deterring fraud.”, which is a non-provisional application claimingthe benefit of U.S. Provisional applications 60/915,934 filed on May 4,2007; 60/939,066 filed on May 20, 2007; 60/977,375 filed on Oct. 4, 2007and 60/980,498 filed on Oct. 17, 2007. The contents of an the precedingprior applications are all incorporated by reference herein.

TECHNICAL FIELD

This invention generally relates to preventing or deterring fraudulentactivity.

BACKGROUND

The selling of products using both conventional shipping as well as byelectronic download is suboptimal from the seller's point of view due toa number of issues related to fraud. A “fraudster” is a user who intendsor attempts to perform illegitimate activity such as assuming a falseidentity, or otherwise avoiding payment for products or services offeredby a seller, rather than being a user who is a legitimate client.Fraudsters use many types of strategies to attempt fraud over theinternet.

One type of fraudster strategy is to provide the seller with credit cardinformation that is stolen. In the case of a payment made by a creditcard, that was issued by a credit card issuing bank, for a downloadablesoftware product, or a physical product, the selling company may have torefund to the issuing bank or a card association an amount equal to thepayment made for the product. In the case of a downloadable softwareproduct, if a seller must also pay a software company, for which it isacting as a distributor, then the seller will often experience afinancial loss, which is often regarded as a ‘cost of doing business’.If the seller and the software company are the same entity, althoughthey will not have a loss, the company will have failed to realize aprofit from a valid sale of a product.

Software vendors have developed a number of strategies in order todecrease financial loss due to fraudulent activity. For example,‘license software modules’ may be distributed with software and mayperiodically determine a current calendar date and remind the user ofscheduled renewal fees which are due. The module may cause the purchasedsoftware program to stop working until such renewal fee is paid.Alternatively software may be designed to periodically establish aconnection over the internet to contact a seller's server and to assesswhether a license is still “active” so that a user will be allowed tocontinue to use the software.

These methods have a number of disadvantages. License manager softwaremodules rely upon periodic reminders which may be realized using, forexample, pop-up windows. These windows are annoying to the user. Furthersoftware engineers can create “cracks” which allow users to bypass thelicensing manager by disabling it in some fashion. Software whichperiodically requires online communication with the seller's server, inorder to operate properly, requires that the user be online which mayoften not be the case. For example, the user may be on an airplane andwithout online access. Additionally, such online validation operationsmay be hindered by server outages and communication failures whichhinder normal operation during this ‘validation’ period. Strategieswhich constrict the operation of software to a particular computer causeproblems when computers crash and a new computer is purchased for thesame user. The creation of computer-specific software modules canrequire complex compilation schemes, such as real-time compilation ofthe source code to create an executable locked to the information of aunique computer identification number. This may be an onerous andcomplex solution that is not viable for smaller software manufacturersor distributors. Strategies in which software requires a hardware lockor “dongle” necessitate the additional cost of this hardware, occupy acommunication port of the computer, and can be ‘cracked’ by softwareengineers. Strategies which rely upon software “wrappers” that changethe executable in manners that prevent fraudulent use are problematicsince software wrappers are often made by a 3^(rd) party and can ofteninterfere with proper functioning of the software.

These currently implemented strategies all have a number of additionaldisadvantages that are overcome by features of the disclosed invention.For example, these methods and systems are all oriented towardsdeterring unauthorized use of the software, or are aimed at promotinglicensing renewal, rather than deterring fraud during the point of saleprocess itself. These strategies do not utilize any information aboutthe client, by way of accessing a client history or online clientprofile (from an online profile website, an online verification website,or a well established site such as E-Bay or PayPal which contain such aprofile). These strategies do not implement fraud prevention strategieswhich have security measures, the strength of which are selected basedupon the value of the digital product being purchase, the history ofpurchases by a user, or other aspect of a users electronic profile.These strategies put a large burden on the software provider, toincorporate fraud-deterrent mechanisms into the software product, ratherproviding the distributor or ‘seller’, or card issuing bank or cardassociation, with mechanisms for deterring fraudsters both at point ofsale and subsequently thereafter. The disclosed invention is pertinentto selling of non-electronic products, software, digital medial,distribution, use, and rights management and e-commerce in general. Thedisclosed features are also relevant to establishing and protecting aclient's valid identity and profile.

SUMMARY

Measures, features, and strategies for deterring fraud during electroniccommerce operations are disclosed. The technology may be used during thepurchasing of digital and physical products, and at later times duringtheir subsequent use. Deterring the purchase or acquisition of softwareand digital media by a fraudster is a primary feature of the invention.Identifying a potential fraudster and differentially handling thetransaction or even prohibiting the electronic transaction may alsooccur. Electronic transactions can also include online banking,obtaining online access to goods and services, as well as other types oftransactions for which online identity is relevant. Electronictransactions can be termed ‘e-transactions’, electronic profiles can betermed ‘e-profiles’, and the ‘e-’ prefix generally indicates that theentity can or is electronically-realized via a computer, internet, orthe like.

In one aspect of the invention the fraud prevention deterrents areselectively and automatically implemented, or automatically proposed,during the sale of a digital product based upon a user's electronicprofile. The particular fraud prevention deterrents that are implementedor proposed can also be selected based upon the value of the item beingpurchased, a seller's deterrence preference, a random assignment, auser's recent web activity, a user's electronic profile, a user'spreference, and any aspect of a referring website by which the userarrived at the seller's website.

In another aspect of the invention at least one fraud preventiondeterrent is proposed to the user during one step of the sale methodassigned for a digital product. This may occur as a pop-up window, oneor more check-boxes, or as part of the checkout process, for example, aprocess implemented by an electronic shopping cart.

In another aspect of the invention at least one fraud preventiondeterrent is proposed to the user during the sale of a digital productand if the user does not opt to allow this deterrent then selected“non-participation” operations occur. Additionally, the user may beinformed as to the nature of these non-participation operations (e.g.,the product will not be shipped until after a delay interval hasoccurred, more extensive questionnaires may be required for thetransaction to be successfully completed). One deterrent which can beproposed is joining or participating in an online fraud deterringservice or community.

In another aspect of the invention at the user is automatically promptedto choose at least one from at least two fraud prevention deterrentoptions during the sale of a digital product.

In another aspect of the invention fraud prevention deterrents areimplemented during the sale of a digital product comprising a fraud freetransaction (FFT) software script that is run or at least transientlyinstalled on the client's computer as part of the electronic transaction(‘client side FFP operations’).

In another aspect of the invention the fraud prevention deterrents areimplemented during the sale of a digital product in the form a fraudfree transaction (FFT) e-mail program. Further, the FFT e-mail programcan contain parameters that are adjusted as part of the electronictransaction (‘server side FFP operations’) such as sending a remindere-mail, or sending a reminder e-mail if FFP client side program doesn'tinitiate contact suggesting possible removal by fraudster.

In another aspect, the fraud prevention deterrents are selected andadjusted during the e-commerce transaction (and may occur automaticallyor by a user). The deterrents can be selected using a fraud deterrentstrength parameter which can be increased (e.g., if the risk of fraud,or cost of fraud, increases) so that the deterrents are also stronger.Such a strong deterrent may incorporate evaluation of biometric markersas part of the e-commerce operation automatically/by user.

In another aspect, the fraud prevention deterrents incorporatevalidation services and websites which are selected and adjusted duringthe e-commerce operation.

In another aspect, the fraud prevention deterrents incorporateoperations which are dictated, allowed, rejected, and adjusted basedupon preferences and information defined in a user's e-profile. A usercan modify the e-profile in order to provide validation and verificationoperations, historical activity, and other types of information whichmay be required by a seller for successful completion of an electronictransaction.

The inventive features disclosed can be applied prior to the electronictransactions, during the electronic transactions, subsequent to a timeof purchase, or a combination of these times.

A conceptual password technology, which may rely upon a grid of images,movies, pictures, and/or text can be created and customized by a user, auser's bank, a card association, and/or a 3^(rd) party user validationservice.

These and additional features and advantages of the invention will befurther described in the following figures and detailed description ofthe current invention. Further, the understanding exists that thespecific embodiments are illustrative of the innovative features and arenot meant to be limiting with respect to implementation and practice.

BRIEF DESCRIPTION OF THE DRAWINGS

For the purpose of illustrating the invention and its advantages, thereis provided a detailed description and accompanying drawings ofpreferred embodiments of the invention. In illustrations of methods,when arrows indicate iteration (a return from later steps to priorsteps), this iteration is understood to be a preferred embodiment, andexecuting the steps a single time may also be an option. In theillustration of methods, steps which occur sequentially may also occurconcurrently, in parallel, may be repeated several times (e.g., in orderto obtain an estimation of a measure by computing a statistic such asthe mean value, or until an operation within a step occurssuccessfully), or may be merged with other steps, prior to the next stepoccurring. In illustrations of systems, when lines contain arrow headson both ends, this signifies that information may regularly travel inboth directions. It is understood that the invention is not intended tobe limited to the precise arrangements and instruments shown, wherein:

FIG. 1A illustrates a schematic representation of a method of modifyingan electronic transaction according to user selected fraud deterrentswherein the deterrents are selected after items and services areselected by the client;

FIG. 1B illustrates a schematic representation of a method of modifyingan electronic transaction according to user selected fraud deterrentswherein the deterrents which are selected by a client limit thesubsequent goods and services that are offered to the client;

FIG. 2 . illustrates a schematic representation of an operating platformconfigured for adjusting which among several types of fraud deterrentswill be implemented as part of an electronic transaction;

FIG. 3A shows Table 1 associated with a client's historical table whichcan reside on the client's computer and the FFT-server, as well as Table2 which is a FFT-server side table representing a e-transaction profile;

FIG. 3B shows Table 3 a FFT-server side table representing the FFTserver operating parameters that are tailored and customized to eachclient, as well as Table 4 showing an excerpt of illustrative methodswhere FFT information is used to select warnings and alerts or otheroperations, according to a trusted pool of transactions;

FIG. 4A illustrates an example of a conceptual password which is apicture set that enables a client to enter a picture solution set;

FIG. 4B shows a preferred embodiment of a conceptual password managerscreen;

FIG. 4C shows a preferred embodiment of a screenshot of a softwareapplication known as EasyImageGrabber;

FIG. 5 illustrates a schematic representation of a method of modifyingan electronic transaction by selecting fraud deterrents according to anFFT-algorithm;

FIG. 6 . illustrates communication operations that may occur during theFFP-based transaction with respect to the client's computer, anFFT-server, and a seller's server;

FIG. 7A. illustrates a method of using a fraud free transaction(FFT)-server and its components with respect to verifying and installinga client-side FFT application;

FIG. 7B. illustrates a schematic representation of an FFT method whichis implemented according to information and rules set out by a clientcontrolled e-profile and an FFT-participating seller;

FIG. 8 . illustrates the modules of an FFT server-side application;

FIG. 9A. shows a web-based interface which can be used to modify aclient's e-profile;

FIG. 9 B. shows a web-interface in which clients can dynamically acceptor reject e-transactions such as e-purchases;

FIG. 9 C. shows a web-interface which allows clients to modify aspectsof their e-profile including shipping and billing addresses andcustomize rules for accepting or rejecting e-transactions such ase-purchases;

FIG. 10A. illustrates the modules of an FFT-client side application;

FIG. 10B. illustrates 3 examples of types of FFT-client sideauthentication windows; and

FIG. 10C. illustrates an example of an FFT-client side application of aconceptual password.

DETAILED DESCRIPTION

FIG. 1A shows a schematic illustration of an embodiment of a method ofproviding a “fraud free transaction” (FFT) or “fraud-free purchase(FFP). In this example, an e-transaction is modified according to frauddeterrents which are automatically selected, or client selected, afteritems and services are selected by the client. This may occur as part ofthe ‘check out’ process and may be integrated into a digitalshopping-cart feature. Alternatively, this may occur when the cliententers a website or at another time or in response to a particularaction by the client such as entering a particular part of a website orselecting a particular product. In step 100 a client navigates to awebsite offering goods and services. In step 102 the client views andselects various goods and services available on the website. This mayfurther comprise making selections, or agreements, related to terms ofuse as may occur in the case of digital media and services. In step 104the client requests that the e-transaction occur wherein payment will beprovided for the selected goods and services. In step 106 the seller'se-transaction server (or the server of a 3^(rd) party that is handlingpayment operations) proposes utilizing at least one FFT method as partof the checkout process. The user can choose to allow or reject selectedFFT operations leading to steps 108 and 110, respectively. Steps 108 and110 can be realized in a number of manners. An example will be shown inFIG. 2 . Initiation of FFT operations 108 may entail performing ‘FFTaccept’ operations on the local server or on the user's remote computeror at both locations. For example the FFT server may attempt to contactthe user's computer if client-side FFT software has been previouslyinstalled on it. FFT reject operations 110 can include asking theclient's credit-card security code (e.g., CVV) number, normally locatedon the back of a person's credit-card.

FIG. 1B shows a schematic illustration of an alternative embodiment of amethod of providing a FFT. An e-transaction is modified according tofraud deterrents which are selected before items and services arepresented to a client, i.e. as part of the ‘login’ process for awebsite. In this embodiment, upon arrival at the website 100, or soonthereafter, the client is queried about allowing one or more FFToperations. The subsequent browsing experience of the user can beadjusted 112 based upon the responses to this query, according tofactors such as 1. whether FFT is generally allowed or rejected, 2. ifallowed, which particular fraud deterrent options are selected, and 3. aclient's fraud ranking as calculated by one ore more operations whichoccur during the FFT process (e.g. a client's ranking on the FFT serveror an acceptance to install/run client side FFT software). A customizedpresentation of goods and services 112 can be achieved for a client bysending the client only to selected portions of the website 102 that areconfigured according to a user's interaction with the FFT server (e.g.as a function of whether the client's identity was successfullyvalidated). In another embodiment, a customized presentation of goodsand services 112 can also be provided by dynamically generatingweb-pages containing content that is adjusted based upon the client'sinteraction with the FFT server. In this manner, the value orterms-of-use of items offered by the seller maybe tailored to therisk-of-fraud associated with each particular client. FIGS. 1 and 2 ,illustrate FFT implementations which are primarily “front end” and “backend”, respectively. Either, or both, of these variations may be used,and further, client activity may cause FFT operations to beautomatically invoked during an e-transaction, in response thereto.

Utilization of Multiple/Selectable Fraud-Free Purchase Options

FIG. 2 shows a schematic illustration of an embodiment of a method ofproviding a ‘fraud free purchase’ (FFP) in which the user is providedwith a number of fraud deterrent options. In step 106 the FFP serverdisplays a query to a client about whether one or more FFP operationswill be allowed to occur as part of the purchase process. The outcome ofstep 106 is step 110 if this request is denied, step 108 if anaffirmative response is provided to this query, or step 113 (not shown)if the client chooses an option in which more information about the FFPprogram is provided. Provision of help and information screens 113 isgenerally available during any step of the FFP process, and may be madeavailable to the client using a graphical button which generally appearssomewhere in the browser window providing a message such as “Click herefor more information”. Alternatively, rather than providing the query ofstep 106, the shopping cart or selling process can be configured toautomatically invoke step 108, and client's are required to select FFPmeasures as part of the transaction. Alternatively, step 106 can befollowed by step 116 if the fraud deterrents are automatically selectedfor users by the website, FFT server (e.g. based upon geographicallocation of user determined through reverse DNS methods).

Step 108 includes a step in which the client is presented with a menu offraud deterrent options. This step is novel from known methods in thatit proposes at least one type of fraud deterrent feature to a client andallows the client to participate in fraud prevention rather than tryingto prevent fraud without the cooperation of client. Conventional methodsrequire users to provide specific information which is used to deterfraud, rather than giving several options. Additionally, this strategydoes not force the client to use a validation method for which theparticular client may not be able to participate. For example, a clientmay not have a web-camera and so visually implemented human basedinteraction may not be possible, although a voice-based transactioncould occur if the client's computer was configured with a microphone.The selection of menu items leads to step 116 in which at least one of aplurality of FFP deterrents 116 a-116 f (and other technologies such asuse of a special browser which is particularly configured fore-transactions, use of a user's e-profile, or use of concept-passwords),are invoked. Alternatively, step 116 can occur automatically if theseller's/banks server 8 runs an FFP server program 10 which has an FFPalgorithm 12 which chooses one of the FFP options 116 a-f eitherautomatically, based upon aspects of the transaction profile (e.g., thepurchase price, the purchased product, some aspect of the client'se-profile, purchase history of the client).

In step 116, if option 116 a or ‘FFP install/verify’ is selected thenthis will lead to step 118. In step 118 FFP programs can be verified,and if not currently on a user's computer, the programs can beinstalled, verified, and run on the client's computer. Installation ofFFP software on the client's machine can occur by concurrentlyinstalling the FFP software module at time of purchase (immediateinstall) or by providing the user with the FFP software as part of thesoftware package which is downloaded. In this latter case, the FFPsoftware will be installed when the purchased software is installed(‘delayed install’). In step 116 or 118 a number of types of frauddeterrent operations may be proposed, selected, or implemented on theuser's computer and these are known as “client-side FFP operations”.

-   -   a. FFP software module installation. This option permits an FFP        software module to be used on client machine according to        selected parameters. The parameters can include the type of FFP        software which is installed, the information contained,        collected, and displayed by the FFP module, and the manner in        which the FFP module can be used to communicate with a 3^(rd)        party server such as the seller's FFP server. The parameters can        also include times at which the FFP software module operates in        intended manners such as making contact with an FFP server or        removing itself from the client's computer. Rather than        installing software on the user's computer, the FFP software may        be configured to ask for permission to simply run as a browser        module or to access information on the client's computer. The        FFP module may also be installed from a 3^(rd) party server such        as a user's bank, to which they may be redirected for this        process, or a 3^(rd) party. The FFP module can be installed as        part of another module that already exists on the client's        computer. For example if a client has “Norton Antivirus” or        “MacAfee virus scanner” already installed on their computer then        the FFP software can be installed as a module which works with        one of these engines. Additionally, the FFP software can be        installed as a module that works with a client's social        networking utility such as MSN-Messenger. In a preferred        embodiment, the FFP software is installed on the client's        computer directly from the client's bank, using the bank's        online website in a process that register's the user's computer        as a valid computer.    -   b. FFP software module verification. This option permits        server-side FFP software which resides on a remote server (e.g.        seller's server or bank server) to check for a previous        installation of the FFP software and if this is found then to        attempt to communicate with the FFP software module that has        previously been installed on client's machine. If a user has        previously made purchases from sellers who use the        FFP-technology, then this purchase history can be stored on the        client's computer and can be accessed in order to determine the        client's historical activity of e-transactions. Further, the        seller's server can verify the validity of this historical        purchase information by cross-checking the information with        other FFP servers such as the FFP servers of other sellers. For        example, in Table 1 of FIG. 3 , if the current seller is not        listed in the FFP history table, then the seller may contact a        prior seller (e.g. FFP 104) and transmit the data in the        relevant row of the table to determine if the information in        table is correct. The prior seller can confirm the information        and also flag any transaction which resulted in a chargeback or        other type of relevant information. A number of methods are        disclosed (e.g. section entitled “FFP-history legitimacy        checks”) that can assess whether historical information of this        table is valid and is not being used by a fraudster who has        stolen this information from a legitimate client.

When FFT software is installed on the client's computer, it mayaccomplish ‘post-transaction validation and verification operations’.For example, the FFT software may be installed as a system process whichmonitors the system processes and records the usage of a digital productthat was downloaded. The FFT software may be configured to contact theFFT server at some future date and to report the user's activity withrespect to the software usage. This feature can assist in cases where aclient rejects a charge related to the purchase of software by providingevidence that the client has installed and used the software during aperiod such as the first 30 days after purchase. In another embodimentthe FFT software may wait an approximate duration, e.g. 3 days and thenrequest that a user confirm that they have downloaded the software andare happy with it. A “yes” response allows the FFT server to communicatethis to the seller, while a “no” response can result in requestingpermission of the user to de-install any version of the software whichexists on the client's computer and to contact the software seller.Failure of the FFT to contact the software seller is an indication thatthe user has de-installed the FFT program and can be used as evidence bythe seller that the client intended fraud, especially in the case of achargeback dispute.

After installation the FFT client-side application can periodically orregularly monitor currently active system processes and can create a logof the usage of the program that was downloaded. It can also check thesystem registry and hard-drive (using the default installation path) todetect if the software program that was downloaded is still installed.This can occur, for example, during the first week after download of anew software program. Upon arrival of a scheduled validation date, wherethe client-side FFT software communicates with the FFT seller-sideserver, the FFT client-side application can transfer the informationrelated to this usage. This information can be used by the seller toshow either that the client is actually using the software, or that itis still installed on the client's computer, in the case of a chargebackdispute.

In step 116, if option 116 b or FFP e-mail implementation” is selectedthen step 120 occurs. Step 120 allows FFP related e-mail operations tooccur according to selected parameters. These parameters can includesending a specified e-mail to an account and selecting one or more dateson which the e-mail will be sent. These parameters can also be used toadjust the content of the e-mail such as providing validation/licensingcodes which can be used to keep the software running. E-mail FFP canalso realize a number of additional important features:

-   -   a. In one embodiment, the e-mail can contain a hyperlink to a        website. The hyperlink may contain information needed to        identify the user and the e-product which was purchased and can        cause the validation process for the purchase to be run. Unless        the client clicks on the hyperlink, in order to verify the        purchase, the purchase is not made. This allows the FFP server        to verify that the client has supplied a valid e-mail address.        This e-mail can also be sent with a hyperlink which when clicked        indicates to the sender of the e-mail that a recurring billing        charge may be implemented as accepted by the user.    -   b. The e-mail implementation operations may also be used to        contact the client if a client-side FFP software module does not        make contact with the seller's FFP-server at one or more times        that were selected by the client for ‘post-transaction        validation and verification operations’, suggesting that the        client has de-installed the FFT software.

The e-mail protocol may have parameters that are adjusted as part of theelectronic transaction, and can include, for example, parameters relatedto: when to send reminder e-mails; what to do if an e-mail is notresponded to within a selected interval; the content of the e-mail whichwill be sent, including client ID and purchase information; and,operations related to sending reminder e-mails if a client-sideFFT-program doesn't initiate contact at particular pre-set dates(suggesting possible removal by a fraudster). While step 118 disclosedsome FFP client-side operations which occurred as part of theclient-side FFP program 14, the implementation of the FFP e-mailoperations illustrate a portion of the server-side FFP operations thatare carried out by the server-side FFP program 222.

In step 116, if option 116 c or ‘Internet-based FFP” is selected thenstep 122 occurs. Internet-based FFP may include methods that relay upononline processes, for example:

-   -   a. FFT-related server confirmations may be required for the        transaction to be approved. One example of internet-based FFP is        implemented so that the digital product that the client has        purchased must communicate with the FFP-online server according        to selected ‘confirmation-rules’. For example, the client's        computer may send a code identifying the digital product (a type        of software or music file) and the client identification number,        and the FFP-server would send back a code which would allow the        digital product to run on the local machine as long as payment        is in good standing. Alternatively, the client-side FFP manager        software can send information about the digital product to the        FFP-server. Further the client-side FFP program may be        configured to check at periodic intervals with the FFP-server to        obtain authorization for the product-client status. Only when        the product-client status indicates that payment remains valid        for the current usage period will the digital product be enabled        to run as intended. This type of fraud deterrent option may        offer a number of advantages to the seller/manufacturer of the        software, but may be very inconvenient from the client's point        of view since internet connections my not always be available        and this strategy can slow down productivity, for example, when        the FFP server is slow to respond or is experiencing unscheduled        outages.    -   b. Online validation service-based transaction. This FFP        deterrent option may be considered as another type of the        internet-based FFP-deterrent and allows online validation and        e-profile services to be used as part of the transaction. For        instance a user may be required to log onto a secure validation        website which provides a service validating and ensuring        identities of its clients. The seller may also belong to this        ‘online community’. By providing the seller a confirmation from        within the community the seller can be sure that the client is        “trusted” and is a legitimate client. There are many variations        and embodiments wherein e-profiles of a client can be validated        and established in order to ensure the identity and integrity of        a client. The online validation service may not only validate        the client's identity (e.g. using a conceptual password) but can        also indicate to the seller the security level or method by        which the user was authenticated. The online validation service        may also provide the seller with information which can be        presented by the seller to a user and can then send confirmation        to the seller that the user was successfully validated. A number        of possible methods by which this can occur will be described        further in the conceptual password section of this application.    -   c. In another embodiment, when the user purchases a good or        service and the website sends an e-mail to the online        verification site using an address supplied by the user. In        order to complete the purchase the user must go to the online        verification website, login using whatever validation process is        required. and then respond to the e-mail. The validation website        can then use this response to send the seller a confirmation of        the user's identity by sending the seller the users validation        information including name, etc. The seller's server must obtain        this response prior to accepting the order. In a further        embodiment, this verification can occur after the purchase and        is more specifically related to the process whereby permission        for the goods to be distributed to the client is obtained. As        shown in FIG. 9A, this online verification site may be under        control of the client's bank or may be a debit or credit card        issuer or association.

In step 116, if option 116 d or ‘Biometric FFP implementation” isselected then step 124 occurs utilizing various types of biometricauthentication technology (BAT). This option allows Biometricinformation to be relied upon during the transaction. A biometric sensorsuch as finger-print or other scanner, an optical sensor such as opticalcamera, or a microphone may be used to sense biometric data. Fingerprintvalidation and verification can occur, for example, using UPEKTouchStrip or TouchChip fingerprint authentication solutions, and caninclude UPEK's “Pay-By-Touch” solutions including “Pay By Touch Wallet”,“e-Check”, and “age verification”. Sonic biometric validation caninclude voice or speech recording, analysis and recognition. BiometricFFP deterrents may utilize sonic or ultrasound biometry, which can beused to measure characteristics of human tissue or organs. For example,eye-length (A-Scan or B-scan biometry), eye-scanning technologiesincluding retinal scans (e.g. blood vessel pattern analysis via Daughmanalgorithms), and iris based methods can allow either identification(one-to many template matching) or verification (one-to one templatematching) of the client. Both steps 122 and 124 can include verifyingthe identity of a client by having the FFT server communicate with 1 ormore validation services which can provide an evaluation of data sent toit by a seller's server. Alternatively, the client and validationservice can communicate directly, and the seller will simply receiveconfirmation and validation of the client's identity from the 3^(rd)party service, so that private information of the client is not relayedthrough a seller that the client may not trust.

In step 116, if option 116 e or ‘Possession-based FFP transaction” isselected then step 128 occurs utilizing various possessions that onlythe client should have. For example, if a client has been associatedwith a radio-frequency identification (RFID) chip, which is known toeither be implanted or otherwise held by the client, then during thee-transaction this chip may be read by an RFID reader which would beavailable on the client's computer. Alternatively, a passport, creditcard, or identity card can be swiped in a “card” reader which can beconnected to a client's computer. For further security, this may be doneduring a human-based multi-media session so that a customer serviceagent of the seller can watch the client and ensure that an actual cardwas swiped. This will deter software programs form being developed thatwould simulate the information being sent using a pre-recordeddata-transmission scheme, rather than requiring the client to actuallyswipe a credit card. Another type of possession can be a CD orflash-based digital key which only the client should have (e.g., ImXSolutions Inc.'s products including CD technology and updated,time-limited tokens). Another type of possession can be physical cardswhich are used in screen-card solutions, discussed later.

In step 116, if option 116 f or Human-Based FFP transaction” is selectedthen step 130 occurs utilizing human interaction. This option allowsaudio, visual or multimedia technologies to be used during thetransaction and to implement human interaction. For example,videoconference technology can allow the seller and client to interactsimilar to how they might during an in-store purchase. The client mayread their credit card information to the seller and hold up theiractual credit card to the video camera. Additionally, if a ‘digital pen’or ‘digital pad’ technology is available then the client may be asked tosign for the purchase. The client can also be requested to perform anout-of-band (OOB) transaction using a cell-phone or PDA.

Miscellaneous FFP Deterrent Options.

Step 116 can present the client with a number of additional FFTdeterrent options that are not shown in FIG. 2 to avoid cluttering ofthe figure. A number of these will be reviewed here.

-   -   a. Voice-based FFP: Selection of a ‘voice-based transaction’        deterrent would cause voice-based transactions to occur. This        may occur either as a subset of the biometric 124 or human-based        130 deterrents, or can be implemented within its own        sub-category. A phone interview may serve as a validation during        the selling transaction in which the client may be asked to        verbally confirm information normally provided over a web-based        interface, and may also be asked additional information based        upon characteristics of their response. Alternatively, the        client may be required to call a 1-800 number from their home        phone and this phone number may be matched against the contact        information linked with the credit card. Additionally, a verbal        transaction can be achieved using a voice over internet        application, or service such as Skype. A full or sample        recording of the voice-based transaction may be collected during        the transaction in order to later serve as evidence that the        client was genuine. In the biometric option a client may use a        verbal password to validate identity. An issue here is that a        verbal password can be recorded by a fraudster. Accordingly, in        an FFT implementation that uses voice recognition the client may        be asked to record between 5 and 20 words, any of which may be        used for voice-matching. The FFT server would select the        particular word needed either randomly or iteratively so that a        fraudster could not simply record a user's voice and then replay        that same word when subsequently asked for validation.    -   b. Out-of-band OOB based FFT: In addition to using phones to        provide out of band confirmation, users may be required to        respond to an incoming text message by sending back a text        message containing a password. User supplied passwords can be        provided in response to an incoming call (where this is done via        key-press or voice) or in response a text message. Failure to        supply the correct password or to answer the phone may        automatically cause the transaction to fail. Additionally using        cellular triangulation methods, a users cellphone company can        confirm in the positive or negative that a user is in the same        location that a purchase is originating from (e.g. the cellular        location assessed by the phone company must match the IP address        location sent by the FFP server, more or less, in order for the        transaction to be approved). This can be done in such a way as        to keep the location of the client private, for example, the        cellular company only confirms or not that the client's location        matches that sent by the FFP server rather than sending the        client's actual location back to the eFFT server so that the        server itself can perform the match.    -   c. Browser Based FFT. In addition to starting the FFT operations        at time of checkout (e.g. FIG. 1A) upon landing at a website        (e.g. FIG. 1B), activation of FFT features can also be suggested        at the start of browsing and as part of the web-browser        platform, wherein users must validate their identities using FFT        operations by interacting with the web-browser or a validation        website to which the browser is directed. This type of        pre-browsing validation may lead to an adjustment of the browser        so that sellers know that the browser has been recently        “verified”. In one embodiment, the browser may include a plug-in        module which presents a “validation” token to the seller's        website showing that the user's identity has been recently        validated (the validation token can be cross-validated by        interaction between the seller and the service that provides the        validation token) and which may expire within a specified        period. In one embodiment the information of the token, can be        sent by the seller to a third party which is a validation        service that issued the token, in order to assure that it is        legitimate (and to ensure the credit card being used matches the        credit card that is registered to the user with the validation        service). In another embodiment the information of the token,        can be sent by the client to a third party which is a validation        service that issued the token, which then contacts the seller's        FFT server “browser validation’ module 232 (of FIG. 8 ) and        verifies that the user or transaction is legitimate. The        browser-based FFT implementation can also allow the browser        module to validate the legitimacy of transaction by ensuring        that a particular visa, computer, shipping address and/or client        is valid. The client can set parameters in an e-profile which        determine how long a token-based browsing session can last, how        long it can last before a reminder is sent to the browser that        re-validation is needed, an also can regulate the type of        transactions which are permitted via the browser. In addition to        other types of validation methods which have been described, the        use of a “validated” browser, obviates that need of having the        user enter various types of validation information at time of        purchase since the seller may assume that the client is valid.    -   d. Concept-based passwords: Rather than, or in addition to,        requiring a login and password both of which are traditionally        alphanumeric, the FFP can rely upon a password that is defined        by a concept known only to the user. A ‘concept-based’ or        “conceptual” password is a valuable type of password technology        because even if an onlooker is watching the client input a        concept-based password, the rule which is dictating the client's        behavior may be very difficult to work out. An example of a        concept-based password is provided using FIG. 4A, which contains        5 rows and 3 columns of pictures. The 15 pictures which are        shown represent a particular picture set. Unlike a traditional        numeric keyboard, the each picture set that is used by the        client can be selected or generated (in a random order) each        time the client is required to perform identity validation.

The concept-based password utilizes at least one ‘concept rule’ which,in this example, requires a) that 3 items be selected by a client, andb) that all three pictures contain people who are not wearing hats. Inthis case the client should chose the picture located in the row 3,column 1 position (i.e. ‘R3, C1’), and the pictures located at positionsR3,C2; and, R3,C3. The pictures in position R4,C1 and R5,C1 fail to meetconcept-rule because at least one person in each picture is wearing ahat. The pictures that should be chosen are the password items while theother pictures are distracter items (also known as ‘hits’ and ‘misses’,respectively. The following are other examples of ‘concept rules’ aswell as the appropriate selections. The collection of hits can also bereferred to as “solution sets”.

-   -   Concept Rule 1: Select 4 pictures in which people's knees are        not shown. (Solution set=R3,C1; R3,C2; and R3,C3;    -   Concept Rule 2: Select 4 pictures in which multiple subjects are        all looking the same direction. (Solution set=R1, C3; R2,C1;        R2,C2; R3,C1).    -   Concept Rule 3: Select 4 pictures having at least 1 subject that        is looking in the same direction as the subject of the picture        in location R5,C3. (Solution set=R1,C1; R2,C2; R4,C2)    -   Concept Rule 4: Select any 1 picture from the first row, 2        pictures from the second row, and the picture at position (R4,        C3). (Solution set=R1, C1 or R1, C2 or R1,C3; R2,C1 and R2,C2 or        R2, C2 and R2,C3 or R2,C1 and R2,C3; R4,C3).    -   Concept Rule 5: Select 3 pictures in a column in which people        are holding different objects and 1 picture from position R1,C3.        (Solution set=R3,C2; R4,C2; R5,C2; R1,C3).

The concept rules can also be defined based upon geometrical patterns,colors, shapes, text items and other types of categories based that arebased upon user preferences. A concept rule can comprise combination ofmultiple rules. For example, one rule might be to ‘choose pictures withpeople looking the same direction’ and this rule can be combined withanother rule that states ‘unless any person in the picture is wearing ayellow piece of clothing’. In other words, logical operations such as“AND”, “OR”, “NOT”, etc can be implemented within context rules.Operations related to selecting picture sets, implementing concept-basedrules, and verification of solution sets can be achieved using the‘conceptual password’ module 234 of the FFT server 12.

The concept-based password has a number of advantages. Importantly, nospecial technology must be purchased or carried around by a client inorder to enact this system. A large number of picture sets, conceptrules, and corresponding solution sets can be generated relativelysimply. A central advantage of this feature is that unlike aconventional password method, even if a fraudster installs software on aclient's computer which records or relays what a valid client is seeingon the computer screen and typing on the keyboard, the nature of therule may remain unclear to the frauder. If a fraudster has collectedthis information from an unknowing client, this is therefore renderedrelatively useless: upon trying to re-establish the client's identitythe fraudster would be presented with a novel picture set whensubsequently visiting the website. Accessing this type of informationwill no longer provide the fraudster with the ability to assume the trueclient's identity.

In one embodiment an FFT-participating entity provides pictures such asphotos, drawings, paintings, words, names, designs, patterns, or othervisual options of the picture set from which the client can select a‘picture password’. In an alternative embodiment, the client may providea set of pictures which are well known and these can be used to definethe picture set or a portion of the picture set. Similarly, the clientmay be asked to select the concept rules which will be used to definetheir picture passwords or these may be supplied by the FFT entity. Forinstance the client may provide (or select from a database) picturesonly from the West side or East side of New York, which are presentedwith other pictures of New York. A bird-watching enthusiast may selectpictures from certain families, or based upon geographical demographic.Similar picture sets and concept rules can be used to create picturepasswords based upon personal knowledge related to sports history (e.g.teams to play in the SuperBowl between 1968 and 1978), pictures ofparticular types of architectural structures (e.g. bridges or buildingsrelated to certain architects), statues or paintings of less popularartists, etc. The pictures may also contain animated clips such as movieclips, or can have other aspects which change over time. In this casethe animation may have to follow certain rules for the associatedpictures to be chosen as part of the password. For example, rules canstate that “birds have to be shown flying during some portion of theclip”, or “some objects have to be traveling across the screen rapidlyand others slowly”. The type of rules for this type of solution arealmost limitless and the same animation scenes can be supplied assolutions for different concept-based rules. Since the chance of picking4 of 15 pictures is much less likely if these choices must occur in aparticular order, this can also be a feature which is required by thepicture solution set. Imposing an order on the manner in which thepictures are chosen decreases the risk that a fraudster will randomlyobtain access to a client's account. So for example, if there are 3pictures of people, the pictures should be selected in the order of ageof the people, with first the youngest, then the middle, and then theoldest. Alternatively, one could use hair-color, where the black hairedpeople are chosen before brown haired people and lastly blond hairedpeople are chosen.

Conceptual passwords can also include album covers, or photographs offamous people (singers), members of favorite bands, members of aparticular band, or other conceptual manner of defining the subjectcontent. Pictures can be combined with either textual or pictures ofnumbers, and the numbers for the password can all be linked by a certainrelationship (for example, no numbers that contains the numeral ‘5’ canbe chosen, or must be chosen, depending upon the conceptual rule whichhas been used). Paintings of famous artists may be used, or paintingsrepresenting a particular period, or only pictures which, for example,contain the color purple may be used.

The conceptual password can be adjusted and even created by the client.FIG. 4B shows a preferred embodiment of a conceptual password managerscreen 300 which is under control of the conceptual password module 234.The conceptual password manager screen 300 shown here enables the clientto import images or videos from other websites and services. We see anumber of import options 301 which include importing material from asocial network site such as Facebook. In this case, Facebook can have animport utility that enables a client to select and import content fromFacebook such as pictures of friends, and pictures posted in imagegalleries. Importation can also occur from website entities which allowuploading and downloading of pictures and multimedia content such asPicassa/Google; MSN-Messenger; MySpace; Kodak.com; Shutterfly.com; andYoutube.com, using software modules written in order to cooperate withthe infrastructures of that particular site. There are also options formanaging conceptual password sets which have been uploaded by the user,which entail choosing ‘hits’ and ‘misses’ and organizing or selecting 1or more password sets to be active. Controls such as buttons 260A, 260Ballow the user to continue, go back to a prior screen, or exit theprocess.

The conceptual password manager screen 300 contains an option for usinga software application called EasyImageGrabber which can be run fromwithin the conceptual password module 234. A screenshot of theEasyImageGrabber is shown in FIG. 4C. Here a portion of a user's desktop302 is shown. The user has navigated to a website which shows albumcovers of the Rolling Stones, and a preferred embodiment illustrates theEasyImageGrabber window 303 which contains controls for obtaining imagesfrom the internet. A spatial selection box 304 can be positioned overthe image desired by a client and can be resized to accommodatedifferent sized images. The select image 306 control button is used totake a snapshot of what is within the spatial selection box 304. Theimage can be designated as a hit or miss using radio-controls 308. If avideo sequence is desired then the client can press the capture button307 to start video capture and then depress this button again after aninterval of video has been captured. Alternatively, the duration ofcapture may be set to a standard duration of 4 or 6 seconds. Afterimages/videos have been captured/imported by the client these may bedefined as various picture sets (including hits and misses) using themanage/validate option of FIG. 4B. This option will invoke screens andoperations which validate the conceptual password sets. Conceptualpassword validation can include a number of evaluation procedures whichensure the user selections meet specific conceptual password standards.For example, conceptual password standards may include: evaluatingimages used for hits and misses and ensuring that the two sets of imageshave similar characteristics with respect to color, sharpness,complexity; evaluating the images to ensure that these meet imagestandards or conceptual standards; human based standards wherein a humantries to guess a password set and if the concept is too easy then thepassword set is rejected. This is important, for example, if the hitsare selected from one website and the misses are selected from adifferent website then differences in image quality may be enough todistinguish between hits and misses. If this occurs, then a graphicalfilter or other transformation process may be applied to the images inorder to cause any differences between hits and misses to be within thevariance of each set independently. In other words transformations canbe applied to the images so that the within set variance is similar tothe between set variance with respect to selected aspects of the imagesand/or video streams.

Multi-Factor FFT Deterrent Option Sets.

Rather than selecting any one particular FFP-option, different deterrentoptions can be combined resulting in multiple-factor authentication,which is known as ‘strong authentication’. In one embodiment, FFT canrequire strong authentication which is defined as requiring two out ofthe following three proofs of identity:

-   -   Something known by the client, like a password, an answer to a        personal question, or even the client's height;    -   Something possessed by the client, like an Credit-Card and        computer identification number; and,    -   Something unique about a person such as a biometric feature        which can be measured, like a fingerprint.

These three examples may be thought of as three different types ofidentity classes (i.e. known, possessed, measured). Rather thantwo-factors, multiple factor authentication may be used where the numberof factors F N are used, may be implemented where “n” is selected orincreased based upon the strength of authentication which is needed.When the number of factors are increased it may be preferable to providethe client with options selected from across, rather than within, thethree types of identity classes (e.g. a BAT can be combined with a PINcode). Alternatively, as the number of factors are increased it may bepreferable to provide the client with options selected from within,rather than within, the three types of identity classes (e.g. a thefingerprint for the index finger of the left hand can be combined withthat of the right hand). Therefore, when client's are permitted toselect 2 or more fraud deterrents, the client can be required to choose1 method of fraud prevention from different identity classes. In thecase of fraud deterrent option classes 116A-F, the client may berequired to select 2 or more deterrents, where each deterrent must beselected from a unique class of deterrent option.

The various fraud deterrent features which have been disclosed offer anumber of different advantages with respect to different fraudstertypes. For example, one type of fraudster is user whose intent is toobtain the item for free by requesting a chargeback and claiming that acredit card was stolen. The requirement of using a registered computerto provide the purchase will deter this type of claim. Another type offraudster is a client who or disputes the payment of the transactionafter the transaction has occurred by stating that they have not usedthe software product or are not happy with it. The FFT log of activity,the schedule validation and payment dates are configured to deter thistype of fraudulent claim. Another type of fraudster is either a minorwho uses a parent's credit cards without authorization or is an adultwho will claim that this was the case. FFT features such asconcept-based passwords will deter this type of fraudster as well asactual occurrences of unauthorized use. Another type of fraudster is aclient who is using stolen credit cards, and the same or differentcomputers over time, and the same or different ISPs. FFT features suchas conceptual passwords, internet footprints, internal/externalfootprints, and the restriction of transactions to authorized computerswill deter this type of fraudster. The different fraud deterrent optionscan be implemented in manners which are appropriate for the type offraud which is being targeted.

The FFT features generally assist in deterring these different types offraudsters and can be used separately or in combination. The FFTfeatures can be used to collect information specific to the client toshow that it was the client who actually made the purchase. For example,if a video-transaction was used during the purchase the archived videofile could be used as evidence that the client made the purchase. Thistype of information can be used as evidence for the dispute process inthis case if the client has attempted a chargeback action. Further,video-based transactions may require a preliminary step in which acustomer service representative must confirm the client looks the sameas an image of the client which is stored on the FFT-server. Theintroduction of an FFT client-side applications provides advantages suchas monitoring the system processes, it can monitor the number of times aprogram has been activated and the length of time for which it was usedand can send this information to the FFT-server during a validationsession. This information can assist with refuting charge-backs usingevidence showing that user has used a product subsequent to the billingperiod and has attempted a charge-back without contacting customerservice or company for resolution. By obtaining information about theinternet profile, such as computer ID, network location and ID, theFFT-server can collect evidence that a particular user is responsiblefor various types of fraudulent purchases, such as multiple purchases ofthe same or different types of software made from the same computer. Ifthe FFT server determines that different cards are being used from thesame computer or local network within a short period, then it can refusethe transaction or provide alerts to the seller.

The fraud deterrents and deterrent options can be automatically selectedand adjusted during the e-transaction, according to the FFT-algorithms216 implemented by the program being implemented by the FFT programmodule 222. Further, all or some of the steps leading to selection andadjustment of the fraud deterrents that will be implemented may occurdeterministically, in a pseudo-random manner, in a manner determinedpartially by the transaction profile, or primarily according to user,seller, or bank preference, as the case may be. While multipledeterrents with strong authentication can make fraud extremely difficultto accomplish, the simple features such as installing FFT-client sideprogram are also very effective, especially with respect to deterring aparticular fraudster from repeatedly committing fraud. For example, whenthe client-side FFT-program is run, it can send back client profileinformation such as computer ID number, computer name, and IP address.If the fraudster then subsequently performs fraud, this is associatedwith that information so that the next time that the same fraudsterdownloads the FFT-client side program, it can match the computer'sidentification information to the previous transaction, which is now onthe Fraudster list, and can identify the fraudster. In order to repeatfraud, the fraudster would have to keep changing computers, credit cardnumbers, and even LAN's, since the LAN when the LAN is identified by theclient-side FFT program. This drastically changes the digital landscapein which a fraudster is forced to exist.

Additional features, such as scheduled payments and validations, whichare trivially accomplished by a mouse-click or two for legitimate usersrequire much more energy and thought for the fraudster. Since theclient-side FFT program may be programmed to require validation of thepayment at 30 and 60 days, failure to validate may indicate to theFFT-server side program that the fraudster has disabled or removed theFFT-client side program. If this is the case then the FFT-email programcan be programmed to send an e-mail, chargeback claims will be moredifficult to substantiate, and repeated attempts by the same fraudsterwill be much more difficult. Further, similar to the practice whichoccurs when making a hotel reservation, although the purchase price is“held” against the card, the card may not be actually debited the fullamount until a scheduled payment date which may be 5 to 10 days afterthe purchase is made and may only occur after validation andverification of user satisfaction. This feature makes later rejection ofthe charge by a client more difficult, and decreases the financial risksof a seller who is a distributor rather than a manufacturer (and who isliable to the manufacturer for the sale) or a card-issuing bank. Assuch, while deterring the purchase or acquisition of software anddigital media by a fraudster is a primary feature of the invention,identifying a potential fraudster and differentially processing thetransaction or even prohibiting or aborting the e-commerce transactionis also intended.

Selection of FFT Deterrent Option Sets.

An FFP is a type of FFT wherein a purchase is made. Other types of FFTsrelate to, for example, accessing a restricted area of a website,logging into an intranet, accessing a software product that is utilizedin an online fashion (e.g. using a word processing program, and/orassociated file, implemented on a remote server). If the transactiontype is a purchase, then a confirmation of shipping address may be partof the FFT process, wherein, logging into an internet website to use aremote application would likely not require this information.

The menu items presented in step 108 (of FIG. 2 and FIG. 5 ) can beselectively restricted based upon the transaction profile including thetransaction type.

FIG. 5 illustrates one embodiment wherein one or more fraud deterrentsare automatically selected by the FFT-server which is running theFFT-server software. The set of deterrents can be selected according toan algorithm of the deterrent option module 200 of FIG. 8 . Thealgorithm of the module 200 may be configured to randomly select thedeterrent options which are used by, or offered to, the client.Alternatively, the algorithm of the module 200 can select the frauddeterrents based at least in part upon the ‘transaction profile’ that iscalculated by the transaction profile module 204.

A transaction profile is comprised of at least one of: a bank'spreferences if the bank is hosting an FFT service; the sellerspreferences (e.g., a seller's deterrent preference with respect to aparticular product); the manufacturer's preferences (e.g., amanufacture's deterrent preference); the item profile (e.g. is this asoftware product or an update for a software product?, What is the valueof the item?) and the user's e-profile (e.g., a user's recent webactivity, and any aspect of a referring website by which the userarrived at the seller's website, a credit card number being used for thetransaction). Rather than the seller's preferences, the preferences of abank or 3^(rd) party FFT service can be used if the user validation isperformed by the bank or 3^(rd) party FFT service, respectively.

The algorithm of module 200 can select the fraud deterrents based atleast in part upon e-profiles. E-profiles are set, calculated, accessed,and/or verified (either locally or remotely, if these reside remotely)using the e-profile module 204, and can be either client providedE-profiles (CPE-profiles) in which the client has participated in thegeneration of information related to their e-profile or client derivedE-profiles (CDE-profiles) which are calculated without the client'sactive participation. The term ‘e-profile’ can refer completely orprimarily to either of these, or to both of these.

A client's e-profile’ can include, for example, an IP address; a realworld address; an e-mail address; a shipping address; a billing address;a credit card number; a credit card history; a payment history; apurchase history; history of timely license renewal; a product serialnumber associated with the user; a computer identification number; anoperating system identification number; a pattern of recent activityrelated to the client; a pattern of prior activity of the client; aphone number; an online e-profile (i.e. CPE-profile); a profile on averification or profile website; a profile on a different commerce-basedwebsite (e.g. e-bay/pay-pal); a profile on a validation website; aprofile on a social-network website (e.g. Facebook, MSN Messenger); aprofile on a bank's website; a profile on a referring website; and, aclient's name or other real-world type of information. The client'se-profile can also pertain to whether the user is using a promotionalcode or voucher. In some cases, if the promotional code was e-mailed tothe user by the seller, the code can be used to identify the user and toverify that the user is also the owner of a credit card which is beingused. Aspects of the client e-profile can include information (e.g.,purchase history of the client) contained in historical tables ofFFT-client side software modules that may have operated on the client'scomputer.

The algorithm of deterrent option module 200 can select the frauddeterrents with fraud deterrent strengths based at least in part uponfraud deterrent scores. A ‘fraud deterrent strength’ (FDS) parametervalue can be calculated by the ‘fraud score module’ 206 of theFFT-server software during the transaction. The FDS value can beadjusted according to the characteristics of the transaction profilesuch as the value of an item, whether it contains a licensing managermodule of the manufacturer, geographical location of the client, andaspects of the client profile such as the purchase history of theclient. As the FDS value is increased, the set of fraud deterrentoptions which are proposed to the user may be made more rigorous (e.g.,requiring an additional verification factor to simply using the 3-digitSVV code or ‘card security code’ located on the back of a credit card)and/or may also increase in number. The FDS may be increased as theamount of fraudulent activity, or related indices, increase in relationto the FFT server, or as assessed by 3^(rd) parties with which the FFTserver communicates, although this may not be specific to the specificclient. For example, if the number of purchases, charge-backs orrejected orders is increasing above a selected amount during the currenttime-period then the FDS value may be raised.

The algorithm of the module 200 can select the fraud deterrents based atleast in part upon a client legitimacy module 208. The client legitimacymodule can evaluate the electronic profile of a client to determine therisk that the client is taking measures related to fraud. For example,the client legitimacy module 208 can attempt to determine if the clientis communicating directly with the seller's server or is relaying theirinformation through a virtual address on a remote server. In otherwords, a client in one location may be taking measures to appear as ifthey are located in a different location, for example via a proxyserver, and the legitimacy module is configured to identify this type ofoccurrence.

The deterrent option module can use the information provided by theseother modules to select and adjust the fraud deterrents which are eitherselected or presented to the client as options. These options may bepresented graphically in the web interface window, for example as one ormore check-boxes or otherwise, as part of the checkout process, forexample, a by modifying the components of electronic shopping cart.These options permit ‘fraud free purchase transactions’ to occur, whichare an e-transaction in which at least one of the described frauddeterrent is accepted by the user, and is implemented with theassistance of an FFT-server which is configured to run a server sideFFT-software program that performs the required operations and interactswith a client side FFT client-side application if it is installed.

Client Rejection of FFT

In some instances the client may be allowed to reject some or all of theproposed fraud deterrent measures. In FIG. 2 , this leads toclient-based FFT-rejection operations of step 110 which can be achievedby client reject FFT module 210 of FIG. 8 . Step 110 may entail a numberof consequences such as flagging the transaction as potentiallyfraudulent, increasing the FDS in the fraud score module 206 andinvoking more stringent algorithms of fraud detection or deterrenceimplemented by the FFT server 12 during the remainder of the e-commercetransaction (e.g. the amount of information on a checkout questionnairemay be increased by the client questionnaire module 224). Step 110 mayalso invoke additional repercussions such as setting modifyingparameters in the ‘delay/schedule operations’ module 226, to provide,for example, a delay between the client's payment and the client'sability to download a digital product, or the shipping date of aproduct, as the case may be. The client may be notified of suchimplications. For example, step 110 may include causing FFT-rejectmodule 210 to present a message to the client such as “If you do notparticipate the software will require an activation code to be entered 3days after the software is installed”.

Merely presenting an option to allow the FFT methods can assist inincreasing fraud detection even if a user rejects one or even all FFTdeterrent options. For example, the simple rejection of all of theproposed FFT options, may signal an increased likelihood that the clientis a fraudster. Further, rejection of FFT operations may cause theFFT-server to perform a number of operations which can decrease fraud.If the user does not opt to participate in a fraud free transactionsthen selected “non-participation” operations may be implemented by theclient reject FFT module 210. The client can be informed as to thenature of these non-participation operations (e.g. product delivery willbe delayed by several days) or non-participation consequences can occurin manners that are not known to the client (e.g., increasedquestionnaire items may be generated at time of check-out). Someexamples of non-participation consequences implemented in step 110 are:

-   -   a. the user may be warned that failure to allow at least one FFT        deterrent will result in a delay in delivery of the e-product;    -   b. the user may be informed that the software which will be made        available will be demo software that has certain limitations;    -   c. the user may be informed that the software which will be made        available will stop running after a specified period or number        of uses (e.g., until after a subsequently scheduled validation        of payment);    -   d. a customer service agent may be assigned to the transaction        to more thoroughly examine the data which the client enters,        including the rate at which the data is entered. A real client        should be able to enter billing information faster than a        fraudster who may have to “look up” this information since it is        not memorized;    -   e. the rejection of FFT transaction can set an increased fraud        score and also the strength of the deterrent which is required        of the user since this rejection may be indicative of increased        likelihood that the client is a fraudster; and,    -   f. the rejection of the FFT may result in the seller        subsequently providing the client with a “web-service not        available” message, or other message which indicates that the        transaction is not possible at the current time. In other words,        the rejection of FFT can enable the seller to determine that the        client is a customer that it would rather not sell to, at least        for the current item and current time period. This option may be        implemented under the guidance of a human operator.

This last consequence of the FFT rejection is related to thepsychological aspect of the “rejection” decision. If the client rejectsall FFT options, this may be indicative of an increased likelihood offraud intention. Thus, although the proposed FFT deterrents may not beimplemented directly, these may provide benefit by detecting potentialfraudsters and either rejecting, evaluating or otherwise differentiallyhandling the transaction. The historical record of rejection of the FFTdeterrents, as well as the level of FFT deterrents which are accepted bya client, is information which can be stored as part of the client'sprofile. Rejection, or repeated rejection, of the FFT deterrents may, insome instances, result in the automatic registration of the client (or aparticular credit card number, IP address, or other transactioninformation) on a list of potential ‘fraudster entities’ which is kepton the FFT-server. A ‘fraudster entity’ may be a user, a card number,IP-address, product identification number, or any other type ofidentification that is linked to a potentially fraudulent transaction.Lastly, because a fraudster may not understand the FFT system andoperations, as well as methods that may be developed to circumventthese, the enthusiasm for pursuit of the fraudulent purchase may bediminished when the fraudster encounters an entity hosting or relyingupon the FFT service.

Software-Based FFT Deterrents

One of the fraud prevention deterrents that can be implemented during ane-transaction is an FFT-based software program. This was shown as thefirst deterrent type of FIG. 2 . In a preferred embodiment, the FFTsoftware can be installed, at least temporarily, as a client-side FFTsoftware application on the client's computer as part of the electronictransaction. The client-side FFT software may perform a number ofclient-side FFT operations such as collecting information related to theclient's e-profile such as a computer name, identification numbers ofhardware components or serial number of the installed operating system,and information related to how the client has connected to the internetor LAN. After obtaining this information, the FFT-based software maythen store this in a data file and/or send this information back to aremote FFT-server for storage.

Once installed, the FFT software can perform a number of operations.

-   -   a. It can operate to maintain a historical record of        e-transactions between the client and one or more different        companies that participate in the FFT program. The historical        record can also be maintained on remote FFT server. The remote        server can reside with a 3^(rd) party (such as the client's        bank), and can be contacted during sales transactions initiated        by any number of sellers, rather than requiring each seller to        have an FFT server.    -   b. The FFT-client software module can be adjusted to contact the        FFT-server at a specific date, after the software has been used        a number of times or for a specified duration, periodically or        in another manner. In one embodiment, early after the        e-transaction, the FFT-software can send the FFT server        information about customer usage of the product in order to        assist the seller with any chargeback claim subsequently made by        the client. In another embodiment, the FFT-software can be        configured to verify that payment was made (i.e. the purchase        was valid) and to carry out specified operations if the        FFT-server indicates that a chargeback occurred.    -   c. The FFT-client software can contain information about when        and how to de-install itself after payment validation has been        made. Even if the FFT-client software is un-installed, either        automatically or by the client, relevant data which was        collected when the FFT-software was installed, or first run, on        the client's computer would have already been sent to the        FFT-server. During subsequent purchases, if the FFT software is        re-installed then the information can be cross-matched with        information of the FFT-server and may be linked to client        e-profiles which reside on the FFT-server.

The FFT client-side software can be installed as a stand-alone programwhich may be a memory resident program which is loaded at startup or maybe invoked by a client when purchases are going to be made. The FFTclient-side software can also be implemented as modules within otherprogram such as antivirus programs, windows update modules, or otherprograms that more or less continuously are able to establishcommunication with the internet such as messenger based program (e.g.,MSN-messenger). The FFT-client side program may also be incorporatedinto a web-toolbar, a Java-applet, or the like. Further, rather thanresiding on the client's computer the client-side FFT program can berealized partially, or fully, using a 3^(rd) party service that theclient log's onto during the transaction. For example, the client maylog into their MSN account prior to performing an e-transaction, and theFFT features such as a conceptual password may be presented to theclient via this 3^(rd) party service. In addition to clientside-software being realized upon a client' computer, the software canbe loaded onto any computer device such as an iPhone, Blackberry, orother personal communication device and may also be realized partiallyor fully using specialized hardware which performs functions describedherein as software functions and modules. The client-side features canalso be linked to hardware unique-identification solutions such as RFIDchips, CPU's with unique identification numbers, anti-theft device tags,Non-Volatile Random Access Memory NVRAM and static BIOS identificationinformation, and the like.

FFT Parameter Tables: Examples from the Server-Side and Client Side.

When the client, seller, or bank choose or impose fraud deterrentoptions that involve installation of and communication with a clientside FFT software module, this module may be installed on the client'scomputer, or, if already installed the residing FFT software module maybe queried by the FFT-server. In FIG. 3A the data of Table 1 containsinformation that may be contained in the client-side FFT program such asmodule 402 or FFT server-side module 202. For example, client profileinformation including a history of purchases of the client may beconstructed within the client-side FFT-module 402 or server side module202. The historical information can include a product ID, Last 4 digitsof credit-card that was used for payment, source of payment (e.g. creditcard, pay-pal), confirmation number used in the sale, License expirationinformation, version information, computer and operating systemidentification and version information, any status information relatedto chargebacks, seller identification numbers related to transactions,manufacturers identification information, and other types of informationas well. The historical information can be fully available, partiallyavailable, password protected, encrypted, made available contingentlybased upon FFT rules and protocols.

In the example of Table 2, the first column contains information aboutthe product that was purchased, the second column is the price of thepurchase, the third is purchase date, the forth is a unique seller IDwhich corresponds different online sellers or commercial entities. Thefifth column contains client identification information, and may includean identification number which has been assigned to the client,information about the computer being used by the client (e.g. a uniqueidentification number such as a hard-drive serial number or computeridentifying number). The sixth column relates to the payment andverification history. In this case “complete” means the transactionoccurred and subsequent FFT operations determined that payment wascompleted for the product. In the second row of column 6, the values[30, 60] and the word “complete” indicate that FFT verification occurredtwice after purchase at 30 and 60 days and that the payment wassuccessfully made. If rather than the term “complete” the term “failed”was present, this would indicate a problem in the FFT verification andadditional information may indicate the nature of the problem. Forexample, failure to communicate with distal FFT server, subsequentrejection, chargeback, or removal of payment may be indicated. The lastrow indicates that an FFT verification procedure is slated to occur in45 days for the 3^(rd) item logged by the FFT module.

As shown in Table 2, of FIG. 3A a transaction profile can be comprisedof an e-profile for the client, an internet profile, a manufactureprofile, a seller's profile, a bank-customer's profile, an item profile,or any a combination thereof. Authentication strength or fraud deterrentscores can be adjusted based upon the nature of the transaction asreflected in the transaction profile.

Generation of the client's e-profile can be obtained by getting thisinformation from: an FFT-server, from a client-side FFT program; frominformation supplied by a client on a web-based form; maintained in ane-wallet type of device; information gathered from the internet profile;as well as other sources. A client profile can include generation of apayment profile. Payment profile generation can include review of achargeback database, history of fraud scores associated with a client, anetwork wide velocity check which relates to the number and speed atwhich the credit card information supplied by the client has been usedfor prior purchases, bank identification number (BIN) to countrymatching and a high risk BIN check, address verification servicematching, the number of prior times the payment information has beenused, rejected, or used with other shipping information. Payment profileoperations can also check the number and type of items being orderedagainst prior orders, such that institutions are permitted to purchasemultiple copies or licenses of a given product while whennon-institutional entities attempt this type of purchase the fraud scoremay be increased. Payment profile can also assess, network patternsamongst participating sellers or within the network of a particularseller, and merchant pattern matching related to transaction profiling,merchant profiling, merchant activity profiling, syndicate information,and chargeback database information related to a particular merchant orproduct. For example, if any aspect of a user's profile was recentlyrelated to fraud within any merchant included on the FFT-network, thenif similar information shows up during a transaction with a differentmerchant, the fraudster can be quickly detected and deterred. Paymentinformation can also include checks to see if the credit card number isbeing used in a country that is different than the bank that issued thecard, if the credit card is being used for a dollar amount which isconsiderably above the prior transactions of a client's purchasehistory, if the shipping address is a P.O. box in a location where thismight not be likely, and other idiosyncrasies related to the payment orshipping information.

Generation of an internet profile can include, for example:

-   -   a. Reverse DNS validation techniques such as IP conversions to:        country, zip code, NPA/NXX, or billing address.    -   b. Checks for high risk IP address, open proxy check, open proxy        check and additional IP-address-related checks and cross checks.        Internet profile generation can include real-time e-mail        validation, including address validation and cross-checking with        known spammer or high-risk e-mail database.    -   c. Evaluation of client's recent activity within the seller's        website or within a referring website, prior activity by that        client on the seller's website. Recent activity can also related        to fraud on the seller's website which may not be directly        related to the user but may represent increased fraud during a        recent period which may for example, be over the previous 2        hours, number of recent visits and time spent on different        pages, as well as information related to “snapshots”.    -   d. Snapshot information related to the information provided by a        user on a webpage at different moments in time. For example, if        a client fills out fields of a form differently at two different        times then the snapshots would be different (changing the amount        of payment or credit card number).    -   e. Times and durations of page views and filling out of forms on        web-pages of a seller, rate of change of information within the        same order. For example, if a user spends a lot of time filling        out billing information, repeatedly changes aspects of the        billing information, or otherwise handles the same web-form        differently at different moments in time then this may be an        indication of fraud.

A manufacturer profile can include, for example: preferences for frauddeterrents which are used, which may be adjusted as a function of pricesof products; values related to counts, rates, trends, and statistics offraud occurrence calculated over at least one period which may be arecent period; geographical regions of users for which certain productsshould be offered, adjusted, or restricted, and other parameters aswell. For example, certain types of demonstration software may not beoffered or may be more restricted based upon the client's e-profile,according to the manufacture's preferences. In the example shown inTable 2 of FIG. 3A, the manufacturer profile has simply been defined sothat if the item sold by the manufacturer is over $500, then the FFTserver should examine the phone number which is provided by the clientand, if possible (i.e. this is a preference, not a requirement, asindicated by the value of ‘1’ for that parameter), should alert acustomer service agent who can process the order by phone. The sellerand item profiles can contain parameters and parameter values whichadjust the types of fraud deterrents which are suggested or implemented,as well as other aspects of the e-transaction, as dictated by the FFTprogram 222 of the FFT server-side program 12.

The transaction profile, including the client profile and paymentprofile, can be accomplished in real-time or near real time, and canoccur transparently to a user, as a background process of the shoppingcart or FFT client-side program, or in an overt fashion. All of theinformation of the transaction profile can be checked, and cross-checkedto determine, for example, the number of times an e-mail address hasbeen submitted with a rejected order, the number of times an address hasbeen submitted with a different user's name or credit card, how manytimes a particular piece of information has been submitted for arejected order historically. If a client-side FFT software applicationhas been implemented upon a client's computer, then information itrelays to the FFT-server (e.g. computer ID number, operating systemidentification code, software and license codes, purchase history) canbe stored in the transaction profile. Since the transaction profile isdynamic it can change over time in response to client input, andinformation provided by, and in response to, fraud deterrent optionsproposed to the client. Through cross-checking, transaction profiles canalso include historical identities assumed by the client as evidenced byrecords of logon names and passwords.

In addition to fraud-score values being positive, assessment oftransaction information may include items which serve to decrease thefraud score by being negative. For example, if a user seems to be areturning client who is using the same credit-card and shipping addressthen a very large negative fraud value can be generated or a flag can beused which indicates very low (or even none of the) fraud deterrentmeasure will be used during the transaction. Although generation offraud values or calculation of a fraud score may be shown in the FIGs atdiscrete steps, fraud deterrent operations may occur in the backgroundas the transaction proceeds and can occur repeatedly, or in sequentialand parallel manners with other operations.

FIG. 3B shows a Table 3 which illustrates an example of a portion ofparameter values that can be set in order to adjust the operation of theFFT-server program 222. Each column represents an operating conditionunder which the program may run. Generally, the default operatingcondition is evaluated as true which causes the client profile to beassessed. If none of the other columns are assessed as true then thedefault parameters are used. If any of the other columns are assessed astrue then the column with the highest FDS score is assessed as true andis implemented, in the case of a tie, the algorithm can be defined aschoosing one column of parameter values over another. In a default case,two deterrents are proposed to the user and the user must select one ofthese. If the product is identified as Product 1, then two deterrentsare selected and the user is not given a choice about permitting theseto occur. If the product is identified as Product 2 then threedeterrents will be proposed to the user and the user must choose 2 ofthese. If Condition1 is evaluated as true, for example, a client profileindicates something suspicious about the client, then 2 deterrents arerandomly selected from the possible 5 that are ‘included’ and user mustselect 2 of these. If Condition2 is evaluated as ‘true’ then the usercan only complete the transaction via multi-media-based transaction.

Four components of the transaction profile are shown including theclient, seller, item, and manufacturer profile (card-issuing bankprofile can also be used). When the parameter values for these profilesare set to 0 then the values associated with this profile may be ignoredwhile a value of 1 causes these profiles to be considered in determiningthe FFT-related operations and calculations which will occur. The ‘frauddeterrent strength; parameter value may be set within a range such asfrom 0 to 5, where 0 indicates that no deterrents will be selected, and5 indicates that those deterrents with the highest strengths will beused. The ‘random selection’ parameter value can be set, where 0 and 1turn random selection “on” and “off”, respectively. The ‘propose touser’ parameter value can be set to 0 if the deterrents will simply beimplemented and to 1 if these deterrents will be presented or proposedto the user as proposed options which can be accepted or rejected by theuser, where values of 2 or more will indicate that 2 or more frauddeterrents are proposed to the user. The ‘number of deterrents’parameter value can determine the number of deterrents that must beselected by the user. Four illustrative types of possible frauddeterrents are shown and parameters values for these deterrents can beset as 0 or 1 in order to determine if these are included or excludedfrom the deterrent set which is selected for or proposed to the client.

Electronic Footprint Validation

Electronic footprints can be generated about the client by the FFTserver-side application using a number of sophisticated techniques. Anumber of internet services have evolved to deter internet basedfraudulent activity (e.g., www.sellitsafe.com; and,www.netscantools.com) by assessing the internet profile of a user.Validation techniques can involve ping sweep techniques, whois querytools, DNS Verification (e.g. the server can obtain an IP address of aclient, perform a reverse lookup to obtain a hostname and then translatethe hostname back to an IP address in order to determine if these matchand thereby verify the DNS record).

The installation of an FFT client-side application, as per the presentinvention, allows the internal generation of an electronic footprint ofthe client (known as an ‘internal footprint’). ‘Footprint-based’ FFTmethod can include generation of a transaction's internet profile whichmay include network footprints which are external network footprints,internal network footprints, or both. The generation of a networkfootprint can include DNS validation and testing and include operationswhich are commonly used to identify networks. For example, the networkfootprint can include using a name-server lookup module which hasfunctions for querying DNS servers resolving IPv4 addresses or hostname.Network footprints can also include implementing modules fordetermination of NetBIOS computer names, IP address queries, TCP/IPvalues, network subsystem names and zones, alias names, network andinternet relay settings, lists of default name servers. The networkfootprints may obtain this information using functions such as UNIXcommands using the various parameters specified to define which recordsare requested from the network (e.g. performing NSLOOKUP, AXFR, and DIGqueries and record types including A, ANY, CNAME, MX, NS, PTR, SOA, andTXT). The network footprint program can also verify and audit IPaddress/hostname mappings, and determine IRR/AS routing information forIP addresses. Network validation may include time-validation routinessuch as sending pings and recording time taken to resolve pings in orderto determine if processing is occurring locally or being relayed outsideof the local network server. The ability to query the network in orderto find other computers on that network can assist in detectingsubsequent attempts to communicate from that network, even if the userhas changed the name of their computer or switched to a nearby computer.

Using both the client-side FFT program to generate an internal networkfootprint and a server-side FFT program to generate the external networkfootprint allows comparisons to be made between the information of thesetwo footprints. Mismatches for particular fields may indicate the userof virtual identities via re-routing methods which may be used, forexample, to make a user appear as if they are located in a differentcountry from that in which they are actually located if they arecommunicating via proxy servers. The FFT client-side program cangenerate a computer profile which is part of the internet profile forthe client by querying the system registry for identificationinformation including serial numbers of installed devices of thecomputer as well as network printers and devices. The FFT-program mayrequest permission from the client before assessing or sending any orall parts of an internally generated network footprint.

FFT Communication Paradigms and Protocols

FIG. 6 illustrates communication operations that may occur during theFFT-based transaction with respect to the seller's server 10, theFFT-server, and the client-side FFT-program or operations 14. Althoughthe FFT-server 12 may exist as part of the seller's server 10, this isnot necessary and it may be physically distinct server operated by theseller or can be operated by a 3^(rd) party such as a bank. When theFFT-server is operated by a 3^(rd) party, then information sharedbetween the client-FFT and the FFT-server will not necessarily be madeavailable to the seller. This has certain advantages, for example, theseller is not privy to confidential information of the client, such aspasswords or biometric data, which is validated by a validation servicerunning an FFT-server. When a client is validated the 3^(rd) party sendsconfirmation (and a confirmation transaction code) of a successfulvalidation to the seller's server, while failure to validate leads to afailure notice. While clients may not wish to send data related to theirfingerprints to a relatively unknown seller, popular validation websiteswhich are trusted by clients can enhance client security and compliancewith undergoing validation procedures. The 3^(rd) party can keep recordsof the transaction and assist the seller in resolving disputes relatedto billing, as indexed by the confirmation transaction code. For theclient, the communication between the seller and the 3^(rd) party FFTserver may be invisible and may occur as a background process.Alternatively, as pop-up window or frame may be created wherein theclient is made aware that their information is being exchanged with the3^(rd) party, rather than the seller.

When a 3^(rd) party FFT server is used for validation it may providedifferent types of information to the FFT-servers of different sellers.For example, if the seller's FFT server is trusted by the 3^(rd) party'sFFT-server then it may give the information (which may be in percentageof total, in number of occurrences, or a normalized fraud value for thatitem) in column 2 whereas an unknown seller may only obtain theinformation in column number 1. These distinctions are shown in theexample of Table 4.

Illustrative Embodiments of FFT-Methods

FIG. 7A, FIG. 7B teach preferred embodiments of the invention. FIG. 7Aillustrates a method of using a fraud free transaction-server and itscomponents in which a client-side FFT application is utilized. FIG. 7Billustrates an FFT method which is conducted by the seller or throughthe card-issuing bank. The examples can rely heavily upon the existenceof a client-controlled e-profile which will be reviewed in FIGS. 9A-9C.Rather than fraud free purchase (FFP) system the system may beconfigured more generally for fraud free transactions (FFT). The FFP andFFT systems are similar except FFT systems are configured for allowingvarious types of transactions requiring authentication and validation ofuser identity, such as allowing access to websites and online services,rather than simply payment for goods.

In the first step of FIG. 7A the client's web-browser arrives at anaddress of an e-entity 100 such as a website which is an establishede-store, e-service provider, e-banking site, and the like. In step 102,the client navigates through the e-site reviewing and selecting servicesor products which will be related to an e-transaction whereby the sellerprovides the client with a desired result such as access to adigital-good or e-service. In step 104 the client initiates ane-transaction by indicating (via a mouse click) that the e-transactionshould occur (e.g. a software purchase will be made, access will berequested for something like e-banking, or an e-service such as aweb-based word-processing program will be used). In step 106 the user isprovided with a choice about whether to conduct the transaction as aFraud Free Transaction member. In step 110 if the user rejects thispossibility then FFT reject operations occur as defined by the seller'sserver such as asking the client would reconsider the choice, imposing adelay upon the finalization of the transaction, etc.

In step 108 the FFT-server operations are initiated which can entail anumber of fraud deterrent options, however, in this case usingFFT-client side software will be selected as can be done using module230 of FIG. 8 or step 118 of FIG. 2 . The steps provided by step 118 mayinclude activating FFT software modules on the seller's server orinitiating communication between the seller's server and an FFT serverof a 3^(rd) party which offers an FFT service so that the operations ofthe FFT-client side applications may be implemented. In one embodimentthe FFT service may be one or more services to which the client isregistered (e.g. a service called E-Trust, which is run by a majorbank). Whether accomplished by the seller's server, a bank or other3^(rd) party provider the next step 150 is to assess if the FFT-programis present on the client's computer. If the FFT program has not beeninstalled previously, then this may be done in step 152. In addition toinstallation of the FFT software, the FFT can be configured 154automatically or according to user, bank, or seller preference. Theconfiguration can include FFT operating parameters including whether toinstall as an active system process or not, whether to load the FFTprogram at least once as a system process if the computer is restartedbetween certain dates, a length of time after which the FFT program willautomatically remove itself, a length of time after which the FFTprogram will check to see if the product has bee paid for or if achargeback has occurred. In step 156 the FFT server initiatescommunication with the client-side FFT. This may include launching theFFT client-side program if it is not activated as a system process. Oncethe FFT client side program is active, step 156 can include running theFFT program to derive client profile including reviewing the client-sideFFT history table, deriving the computer, operating system, and device(e.g., hard-drive) identification numbers or serial codes. The FFTclient side-database can contain e-transaction history:

The next step 158 is to process and validate FFT information. Forexample, the FFT server can validate the clients FFT history, bychecking to see if information in the FFT history matches the data ithas in its own FFT database 218. For example, if the FFT client-sideprogram's database or transaction-history module indicates that theclient previously purchased a certain type of software and paid for itsuccessfully, then a transaction number associated with that purchasecan be used to lookup that same transaction on the FFT server and, byway of cross-reference, determine if the two pieces of informationmatch. Alternatively, if the purchase was made from a 3^(rd) party, thenthe FFT server can contact the FFT server of the other party and sendthe transaction number along with the transaction details. The FFTserver of the 3^(rd) party can then verify or refute the informationabout that transaction. Step 158 can include using transaction numbersto determine if the data in the FFT client-side database is correct orincorrect. The validation process will also check and crosscheck theclient's computer, operating, hard-drive ID number against its FFTserver database to obtain any information about the client from previousFFT installations. Accordingly, even if a client removes the FFT programfrom their computer or if the computer crashes, a client's FFTinformation from prior installs can be accessed and utilized as part ofthe e-transaction fraud review process. A client's FFT history may alsoinclude how many times the FFT has been run, has been removed or allowedto self-remove, how many times a downloaded software program has beenused and for how long, past purchases with the same credit cardinformation, mailing address, etc. Thus an FFT profile can be createdand may become part of the transaction profile with respect todetermination for the fraud score. When a 3^(rd) party FFT server isused it may provide different types of information to a seller's FFTserver. For example, if the seller's FFT server is trusted by the 3^(rd)party's FFT server then it will give the information (which may be inpercentage of total, in number of occurrences, or a normalized fraudvalue for that item) in column 2 whereas an unknown seller may onlyobtain the information in column number 1. These distinctions are shownin Table 4 of FIG. 3B.

In step 160 the FFT server provides FFT info to seller's FFT server orseller's transaction server. In step 162 the e-transaction occursaccording to the seller's fraud deterrent algorithms and options whichcan use a fraud score supplied by the 3^(rd) party FFT server, or whichcan calculate its own FFT score from the various fraud values generatedfor the different items of the FFT profile that was generated. In step164, the FFT history is updated on both the FFT server and the FFTclient side program. Lastly in step 166, the e-transaction is ultimatelyconcluded with the client either obtaining or being refused thee-product or service which was the object of the transaction.

In FIG. 7B, an FFT-method is shown in which a client-created andcontrolled e-profile is relied upon. In step 170 the client logs onto aplatform which hosts an FFT-server which is configured for allowingclient's to modify their e-profiles. The FFT-server is preferably hostedby the entity with which the client has banking or VISA accounts. Instep 172 the client can modify their profile in a number of manners,including, for example, allowing a particular e-entity the right tocharge their credit cards, allowing an e-entity to charge the card overa specified period (e.g. over the following 2 days during which theclient will be on vacation and away from their authorized computer), aswell as setting limits for this client's cards, or allowing, rejecting,or adjusting other features of their profile such as those disclosed inFIGS. 9A-9C. If the client wishes to require that electronic orders canbe placed only from computers having specified identification numbers,then the client can operate FFT-related software 174 which is configuredto obtain specified information from the client's computer so that it isregistered. The client may also chose the order of FFT-validationoperations such as selecting a process by which if the client doesn'trespond via a client-side FFT program then the client is contacted (viavoice or textual means) at a specified cellular phone-number. Such outof band confirmation may also require the client to give a verbal ortext-based password. At a subsequent time, when the client visits aseller's website and initiates an e-transaction 176, then the seller'sserver will validate the information supplied by the client (e.g. ashipping address) against the client's e-profile information, whichresides either on the seller's FFT-server, with the client'scredit/debit-card provider 179 a or with a different 3^(rd) party suchas the client's bank 179 b. The validation process 178 can utilize rulesdefined by the FFT-server, the client's e-profile, the seller'srequirement, or a combination of all of these. If the validation issuccessful 178 a then the e-transaction is approved 180 and thefinalized 184 by providing confirmation numbers, notices of terms andconditions, and the like. The step of finalization 184 can includeoperations such as updating the information in a seller's FFT-server,the client-side FFT application, and the FFT-server of any 3^(rd)parties that participated in the transaction. The step of finalization184, can also include providing the goods or services paid for by theclient, or scheduling these to be delivered, as well as adjustingparameters related to post-transaction validation and verification,which can occur as scheduled events at selected times. In the case wherevalidation fails 178B, and the FFT-server rejects the e-transaction 182,and transaction rejection operations occur 188. Transaction rejectionoperations 188 can include notifying the client of this rejection,directing the client to a customer service representative, allowing are-attempt for the transaction, displaying error messages or “serveroutage” messages to deter the client from knowing that a fraudulentattempt has been detected, and other operations as well. The informationof the FFT-server is obviously updated as well to reflect this failedattempt, and counters or flags related to fraud may be adjusted in theFFT-server. Step 178 can also be replaced by step 178′ in which acard-issuing bank receives a transaction request from a seller (in step176) and processes this request by contacting a client using anFFT-server side application to contact the client's client-sideapplication in order to validate the transaction. In this case step 188′includes the bank accepting or rejecting the transaction based upon theclient's interaction with the client-side program and sending thisdecision onward to the seller. Steps 178′ and 188′ are not shown in thefigure.

In FIG. 7B, step 170 can be incorporated in into a shopping cart processand can occur in a sub-window provided by a seller's FFT-server, or canoccur by having the seller's FFT-server redirect the client to a 3^(rd)party FFT-server that is configured to operate jointly with the seller'sFFT-server (e.g., by way of an FFT-application run on the seller'sserver). In this case step 176 entails returning the client back to theshopping cart to reconfirm and continue the transaction. The steps ofthis method can be adjusted, repeated, and performed in a differentorder in order to provide convenient and user friendly implementation ofthe fraud-deterrent features which utilize rules (that maybe at leastpartially user defined) to assess information provided by the client inrelation to a customized e-profile which contains preferences andinformation that are under the client's control.

FIG. 8 illustrates an FFT server-side application 12, running on an FFTserver, and its components which function in manners that have been atleast partially described herein, but are reviewed with respect to apreferred embodiment. The modules 200-236 each contain algorithms,rules, software codes, and parameter values which allow the differentmodules to accomplish their operations. Operations associated with aparticular module can be accomplished jointly in cooperation with othermodules, but are associated with particular modules in this disclosurefor the purpose of illustration. Operations described may occurindependently, jointly, or wholly within FFT client-side applicationswith which the FFT-server side application communicates, and the systemis realized so that the FFT-server side application and multiple FFTclient-side applications operate to jointly provide the systems andmethods of the current invention.

The FFT-deterrent module 200 enables fraud deterrent options andfeatures to be selected and presented to the client. The preferences forFFT client-side screens (e.g. FIG. 10B) used for various clients can bestored in this module.

The transaction profile module 202 enables creation, communication,modification, validation, and assessment of the transaction profile aswell as implementation of operations related to the transaction profile.

The e-profile module 204 enables creation, communication, modification,validation, and assessment, of the e-profile profile as well asimplementation of operations related to the e-profile.

The fraud-score module 206 provides calculation and adjustment of fraudscores that may be used to select fraud deterrent features andoperations.

The client-legitimacy module 208 provides the assessment of a client'slegitimacy and can include routines for assessing, for example, whethera client is using a proxy server.

The client-reject FFT module 210 provides operations related to whatoccurs when a client reject the use of FFT in the transaction, and canalso implement processes related to what occurs when the FFT rejects atransaction initiated by the client.

The footprint validation module 212 provides operations related toobtaining, evaluating, comparing and contrasting information defininginternal and external footprints.

The FFT-alerting module 214 provides operations related to alertingvarious parties of activities that are defined as being related tofraud, such as customer service representatives who may have to manuallyreview the purchase prior to approval.

The FFT algorithms module 216 provides various FFT-algorithms which arerelated to fraud detection and prevention, such as providing anti-fraudanalytics according to various strategies.

The database module 218 provides operations related to storing,searching, retrieving, and adjusting all historical and referenceinformation and FFT-related activity and logs.

The communication module 220 provides operations related tocommunicating with the client, the seller, and any 3^(rd) party relevantto an e-transaction and can include implementation of out-of-bandcommunication and various in-band alternative communications such ascommunicating with the client via a third party service or communitysuch as FFT module on a service such as Facebook. The communicationmodule also handles all communication between card associations, banks,sellers, clients or other parties that may be participating in thee-transaction.

The FFT programs module 222 serves to coordinate and control all theother modules of the server according to one or more FFT programs whichhas been selected by the FFT-server administrator.

The FFT-deterrent module 224 provides operations related to thegeneration, presentation, validation, and processing of questionnairesand fields which are presented to the client.

The delay-schedule operations module 226 provides operations related toscheduled events such as recurring billing, post-payment validation andbilling, setting e-mail notification and reminders or out of bandcommunication and the like.

The help and assistance module 228 provides operations related toproviding clients/users with help and assistance such as informationrelated to various features as connecting clients with customer serviceagents either via phone, chat lines, or e-mail.

The FFT upload/download module 230 provides an upload/downloadoperations and software modules that FFT clients can upload and install,and also controls encryption, and version, and license control forclient-side FFT applications. This module can also check for previousinstallations of the client-side FFT application, can receive and sendimage data related to realizing conceptual passwords, can obtainmulti-media information sent by a client such as may occur when a clientinteracts using a web-camera with a customer service representative.

The browser-based FFT module 232 provides operations related toestablishing communication or validating an FFT browser configured toprovide a secure and FFT-enabled e-transaction, or FFT-browser modulesthat may be implemented within existing browsers and toolbars.

The conceptual password module 234 provides operations related togenerating, adjusting, and presenting conceptual password screens andvalidating a user's entries as well as allowing users to manage, define,and cancel partial or entire picture sets.

The administration module 236 provides the FFT-administrator with auser-friendly interface screens for adjusting the operation of theFFT-program.

FIG. 10A illustrates an FFT client-side application 401, running on aclient's computer, and its components which function in manners thathave been at least partially described herein, but are reviewed withrespect to a preferred embodiment. The modules 400-438 each containalgorithms, rules, software codes, and parameter values which allow thedifferent modules to accomplish their operations. Operations associatedwith a particular module can be accomplished jointly in cooperation withother modules, but are associated with particular modules in thisdisclosure for the purpose of illustration. Operations described mayoccur independently, jointly, or wholly within FFT client-sideapplications with which the FFT-server side application communicates,and the system is realized so that the FFT-server side application andmultiple FFT client-side applications operate to jointly provide thesystems and methods of the current invention.

The FFT-deterrent module 400 enables fraud deterrent options andfeatures to be selected and presented to the client. The preferences forFFT client-side screens (e.g. FIG. 10B) used for various clients can bestored in this module on the local or server FFT program.

The transaction profile module 402 enables creation, communication,modification, validation, and assessment of the transaction profile aswell as implementation of operations related to the transaction profile.

The system processes monitor 404 enables monitoring of system processesand program execution with respect to software product that have beenpurchased using the FFT system.

The footprint module 406 provides calculation of a client's internalfootprint.

The FFT protocol module 408 enables the client or remote server tomodify FFT operations and features which will occur during transactions.

The FFT history module 410 records, transmits, and presents historicaltransaction activity to the client and may be password or otherwiseprotected.

The Graphics/encryption module 412 provides operations storage andpresentation of graphical images that are used during various FFToperations.

The recurring module 414 provides operations related to scheduling,alerting, and confirming events related to recurring billing and mayalso function to enable and disable features of programs on the client'scomputer according to charge-back and recurring billing activity.

The FFT algorithms module 416 provides various FFT-algorithms which arerelated to fraud detection and prevention, such as providing anti-fraudanalytics according to various strategies.

The database module 418 provides operations related to storing,searching, retrieving, and adjusting all historical and referenceinformation and FFT-related activity and logs.

The communication module 420 provides operations related tocommunication between the client the FFT server, other client-side FFTprograms that have been registered by the client on other computers, andother parties that may be participating in the e-transaction.

The FFT programs module 422 serves to coordinate and control all theother modules of the server according to one or more FFT programs whichhas been selected by the FFT-server administrator and/or the client.

The FFT-deterrent module 424 provides operations related to thegeneration, presentation, validation, and processing of questionnairesand fields which are presented to the client.

The delay-schedule operations module 426 provides operations related toscheduled events such as recurring billing, post-payment validation andbilling, setting e-mail notification and reminders or out of bandcommunication and the like.

The help and assistance module 428 provides operations related toproviding clients/users with help and assistance such as informationrelated to various features as connecting clients with customer serviceagents either via phone, chat lines, or e-mail.

The FFT upload/download module 430 provides an upload/downloadoperations and software modules that FFT clients can upload and install,and also aids in controlling encryption, and version, and licensecontrol for client-side FFT applications. This module can also receiveand send image data related to realizing conceptual passwords, canobtain or send multi-media information sent by the FFT-server, such asmay occur when a client interacts using a web-camera with a customerservice representative.

The browser-based FFT module 432 provides operations related toestablishing communication or validating an FFT browser configured toprovide a secure and FFT-enabled e-transaction, or FFT-browser modulesthat may be implemented within existing browsers and toolbars.

The conceptual password module 434 provides operations related togenerating, adjusting, and presenting conceptual password screens andvalidating a user's entries as well as allowing users to manage, define,and cancel partial or entire picture sets.

The administration module 436 provides the FFT-administrator or clientwith a user-friendly interface screens for adjusting the operation ofthe client-side FFT-program.

FFT Client-Side Features

FIG. 10B. illustrates 3 examples of types of FFT-client sideauthentication implementations. In a preferred embodiment theseimplementations are invoked in response to a bank receiving atransaction request during an e-transaction. The bank can tell that thetransaction is from an online-source due to part of the transaction codewhich is sent by a card-acquirer. There are three levels of securityillustrated. In the first level the FFT-server of the bank sends acommand to the client's FFT program to simply present a notification 450to the client that the transaction has occurred. This notification willremain on the client's computer until the client presses the buttonlabeled “close”. If the client's computer is not on, and the FFT-servercan not contact the client side-FFT program then the transaction can beautomatically rejected since it is unlikely that the client will beconducting an e-transaction if the registered computer is not even on.Alternatively, the client may be conducting the transaction from adifferent computer and if the client has defined an out-of-band contactor confirmation method, rather than being automatically rejected thetransaction result in this type of out-of-band activity. Theaccept/reject popup 454 can also be utilized wherein the e-transactionis not allowed until the client actively accepts the transaction viabutton 452 a. The transaction can be rejected if the client pressesbutton 452 b, or if the timer on that button reaches zero-seconds (inthe figure the client has 11 seconds remaining). In the login/passwordaccept/reject popup 456, the client must enter a password, or a usernameand password into information fields 458 prior to providing an accept orreject response, and prior to the timer on the reject response buttontiming out (in the figure the client has 13 seconds remaining).

FIG. 10C. illustrates an example of an FFT-client side application of aconceptual password. In this example the picture set is made of images464 a that have been uploaded by a client. In this case the conceptualpassword is defined as scientists whose research includes personallydetermining the regional sources of brain activity (rather than havingresearch assistants do this for them). This is obviously a verydifficult rule to follow for anyone except the client who defined thisset. The presented conceptual password set 462 a is becomes the solvedpassword set 462 b when the client selects the images which have beendefined as “hits” 464 b. The message 466 which accompanies theconceptual password can include information about the transaction whichis being processed and the “decline” button may include a timer whichcounts down the remaining time for the client to provide a responsebefore the transaction is rejected. Upon subsequent iterations of thisconceptual password the images which are presented to the client can bepresented in a different order an may contain different images for the“hits” and “misses” which were previously defined by the client.Accordingly even if a fraudster records this activity or views theclient's response it is of little use since the images will be differenton a subsequent presentation.

Secure Adjustable Client Online Profile (SACOP)

In one embodiment the FFT systems and methods may utilize an onlinee-profile which includes client adjusted preferences and informationthat are used during FFT operations. The e-profile may be stored on aFFT server provided by either a 3^(rd) party FFT service or by aclient's banking or credit card institution. The e-profile can includebilling and shipping addresses associated with a credit card so thatclients can allow items to be shipped to more than their billingaddress. The e-profile may also include information related to computerswhich are authorized for use with the client's credit card so thate-transactions must be made using a particular computer with aparticular credit card. The e-profile can also include spending limitsfor online spending, or spending limits related to charges related toparticular websites. The limits may be related to an amount, a durationduring which a transaction will be allowed to occur, a website or clientwhich is blocked from providing charges with the card. This type offraud solution requires the active participation of the client, and mayrequire such extra activity as setting up an e-profile and/or installingFFT software on a personal computer. Users obtain increased flexibilityand security in their online transactions.

The e-profile can also include preference for validation of the client.Validation rules determine what operations occur during the client'sverification by a third party. For example, validation rules may requirethat a client's name, credit card number, shipping address, and computerID numbers or computer name correspond to the values provided in theire-profile. Although validation rules can be set by the client, an onlinepurchaser may utilize validation rules that require either more or lessinformation than the client has set. In this case one method ofreconciliation is that the two validation rule sets are combined so thatall the necessary information is provided. This can occur by providing acustomized and dynamic webpage which is created during an onlinepurchase and which requests information from the client during apurchase. The online profile can use validation rules to also determinea number of manners in which a purchase can be validated. The client mayrequire only that the FFT service be used or may further require amanually accomplished FFT method. One example of a manual FFT servicemethod is a method in which the client must log onto the FFT service andmanually allow or reject a purchase. A second example of a manual-basedFFT service would require that the client confirm a message orvoice-based call that is sent, for example, to their PDA or cellularphone and this step may also require that they provide a secret textcode (or verbal password) in order to confirm the purchase. This methodmay be particularly attractive for parents who are monitoring theirearly-adult children's spending and who may wish to have the ability toaccept or reject purchases in a flexible and real-time manner. A thirdmanual-based FFT service method would require that the client obtain aconfirmation code from a seller and then enter this code and the amountof the charge in order for the transaction to occur. These featuresprovide benefits, flexibility and increased security for not only forthe clients and the vendors but also for the credit card companies andbanks themselves.

Just as an e-profile may be stored on a FFT server provided by either a3^(rd) party FFT service or by a client's banking or credit cardinstitution, the information relayed from the client may be processed bythe seller, a third party FFT service, or a client's financialinstitution. While the shipping address may be provided to the seller,the client's computer number may only be transmitted to entities trustedby the client. A number of methods may be used to differentially sendvalidation information to two different parties either in parallel orserial steps which occur during the e-transaction.

As shown in FIG. 9A, a client can log onto the FFT server using aweb-based interface 254 and can adjust features of the e-profile 266such as adding a primary or additional shipping address (e.g. a familymember's address where a gift is to be shipped), which is different thantheir home address, so that goods may also be shipped to this address.Additionally, clients may run FFT client-side software operations (e.g.as can be invoked as part of the client choosing the “view/modifycomputer ID info” option) which will obtain identification numbers fortheir computer's operating system or computer ID number (e.g. hard driveserial number) so that e-transactions may only be made from theircomputer. The FFT client side software can be software that remains ontheir computer and is accessed by the user from time to time, or may bea program which is loaded at startup, such as a system tray component,or may be a web-based Java applet which is installed as a plug-in andassociated toolbar, for the client's web-browser application, or whichruns over the internet and requires that the user click to provide itwith permission for obtaining information from the client's computer andnetwork. In this latter case, software may be run from a remote locationand nothing need be installed on the client's computer. In any case, atthe time of a subsequent e-transaction 178 a similar software operationwill occur to re-check this computer specific information. After ane-profile has been created 172, the client may go to any online storethat is configured to interact with the FFT system and will be allowedto make a secure FFT purchase according to validation rules. As stated,if the validation rule requires information about the client's computer,then client side FFT operations can be run from a client-side program,checking for the FFT program residing in the system tray, or using abrowser plug-in. In any case, when the client makes their onlinepurchase clicking to complete a transaction 176 an FFT server validatesthe transaction 178. If the FFT server is located with the seller, thenthe seller (e.g a bank) may approve 178A or reject 178B the transaction.The seller may also wait as the FFT server of a 3^(rd) party 179A orwhich may be a bank 179B verifies the information. If the 3^(rd) partyis not a bank, the FFT server of the 3^(rd) party may communicate withthe FFT server of a bank and this result will then be routed through the3^(rd) party and back to the seller. These steps can occur in atransparent fashion with respect to the client and seller. In the casewhere a transaction is approved 180 the transaction is finalizedsuccessfully, otherwise the transaction can be rejected 182 andappropriate actions occur which may include fraud alerting activities ifcertain types of rejections are detected at more than a specified rateof occurrence.

In FIG. 9A web-based interface is shown which can be used to modify theclient profile disclosed in FIG. 7B and elsewhere in this application.The client can access the interface by going to an FFT related website250 such as their bank or credit card service homepage and logging inwith their login and password information 252. After initially settingup the service, a client may be required to perform subsequent logon'sonly from the registered computer, and may only register additionalcomputers by performing highly secure operations such as, for example,by obtaining a token from their FFT service which can be used once,within a specified amount of time, to register a second computer. Uponsuccessful login they can be provided with an administration window 254having a set of choices which are presented on sub-windows that arerelated to traditional banking 256 and to the FFT service 258. Althoughthe menu items of window 264 are separate, these may all be combinedwithin different sections of the e-profile, and more or less items arepossible. The user may select a radio-button 264 by clicking on an emptyradio-button 262 of any of the items on either window and then choose tocontinue 260 in order to implement the option. Selecting the“View/adjust e-profile” allows them to do so and can invoke a e-profileview-adjust screen 266 such as that shown in FIG. 9B. In FIG. 9B theclient is able to modify aspects of their e-profile including shippingand billing addresses. If the client wishes to add computer informationthen this may be done either by manually entering the information or byrunning an FFT software module which finds this information on theclient's computer and sends it back to the FFT server in an encryptedfashion. The client may also set/modify limits for e-transactionsincluding those specific to spending limits, blocking/accepting chargesfrom specific websites, durations for which certain charges may be made.The “view/modify credit info and users” feature can be used to modifywhich credit cards are associated with a user's profile (although aseparate e-profiles, e-limits, and rules can exist for the same userwith several credit cards) and names which might be allowed to chargeusing selected credit card numbers. Once an item's radio button has beenselected, the client is permitted to go back 260A or continue forward260B using the available navigation buttons 260.

FIG. 9C shows a web-interface in which clients can accept 270 or reject272 orders such as e-orders which are described in transactioninformation fields 274 which can include the transaction number, date,amount, seller, as well as a description of the item or servicepurchased. Unlike a conventional credit-card statement, these arepending transactions rather than historical purchase records and thesedo not become official until the client makes an approve selection 270.An alternative method of validation is also shown in which the clientmust provide a transaction code 276 provided by the seller and theamount of the transaction 278 in order to confirm a payment 280. Thetransaction code may be provided by the seller at the time oftransaction or may be sent at a date following the transaction (e.g.this may be mailed or verbally provided to the client). Alternatively, aclient can allow these transactions before these actually occur bydefining e-entities with whom the client intends to transact over alimited future period.

Returning to FIG. 9A, the client may also be able to change e-passwordsused for logging into the FFT server or used to confirm FFT transactionsfor various websites or credit cards. It is also possible for a clientto change the FFT level which is used, wherein higher FFT levels may setdifferent operations to occur during an FFT transaction. For example,the FFT level may be set to be ‘low’, ‘medium’ or ‘high’ where ‘low FFTlevel’ permits the current e-profile to be used, while a ‘high FFTlevel’ may require that any e-seller either call, webcam, or otherwiseconfirm using a real person, the identity of anyone attempting ane-transaction from using the credit card number, to logging into aninternet service, to using a digital rights media product. Reversion toa “high FFT level” may occur if a clients' wallet was lost, if there isevidence of attempts a identity theft, or if otherwise fraudulent eventshave occurred.

The FFT server can use this type of e-profile feature to deterfraudulent use of digital products and software. For example, the clientmay associate a specific computer in the profile with a particularsoftware program license, such as an internet-based software productwhich is not installed on the user's computer, but rather is accessedremotely. The software license can be associated with the user in the“e-limits and rules” section of the program. This feature is convenientbecause if the client wishes to use a remote software module located ona remote server, rather than requiring the user to log into the remoteserver each time the software needs to be accessed, the computer IDnumber can be automatically checked by the remote server obviating theneed, and related time and effort, for the user to login or memorizevarious passwords that may be needed for different software packages andprovided by different vendors. Further if the client's computer isstolen or broken and a new computer is purchased by the client, theclient need only update the client's information in order to begin touse the product again. This feature may be very useful for institutionswho are using an institutional e-profile to manage their licenses sinceas new students enroll their computers may be added to the list ofaccepted computers while the identification numbers of the computers ofdeparting students are removed using the “e-limits and rules”.

ADDITIONAL CONSIDERATIONS

Currently over 30 percent of all internet commerce transactions areultimately rejected or abandoned. Research has clearly shown that whenadditional steps added to order processing, which slow down ordercompletion or require large amounts of validation information, that areduction completed orders results, such as occurs during shopping cartabandonment. The present invention provides a number of solutions whichshould increase legitimate clients' satisfaction levels fore-transactions. The increase in ease, efficiency, automaticity, andflexibility should lead to decrease failures for completion of shoppingcart checkout. It is contemplated that the FFT client-side applicationcan be uploaded, installed and configured in less than 2 minutes andpost-installation user customization is simply and quick. Once an FFTclient-side application is installed, the validation and securityfeatures can occur largely in the background and decrease the time andeffort of a client by requiring less information be provided oncheckout-forms. In fact the FFT client-side application can have“auto-complete” features which work with a seller's website and allowthe client to quickly enter shipping, billing, and other information byhaving the FFT-application automatically, or semi-automatically, fill inthis information. Unlike the “Gator™” applications, the client'sinformation can be accessed from a remote FFT-server so that theclient's information is secure and does not need to reside on client'scomputer. An important feature for the client which is offeredadjunctively to the fraud-prevention is a record of activity whichprovides clients with historical records of their purchase activity inan easy and convenient manner. Further, as with online communities suchas that of e-bay, as client's use the FFT-service more, their e-profilescan be adjusted to reflect this activity (as well as history ofcharge-back), and this can lead to a client becoming increasingly“trusted”. Other features of the invention, such as offering multiplefraud-deterrent options and allowing users to modify their e-profilewill also greatly increase user control, trust, and satisfaction withe-transactions.

To some extent, pre-charge client authentication can automatically takeadvantage of checking and cross-checking client related information toverify each transaction, including evaluation of chargeback history,geo-targeting, IP address scanning, and real-time verificationtechniques. However pre-charge scanning has its disadvantages, such assometimes requesting extensive information from a client. Further, if aclient is experiencing difficulty entering ordering information (e.g. anelderly person) the pre-charge evaluation (e.g. a strategy which reliesheavily on ‘snapshot’ analysis) may evaluate this confusion as attemptsat fraud. The FFT process substitutes these types of tedious andmanually implemented online verification schemes, automated evaluationsuch as verifying that a credit card is being used with an order that isemerging from the computer that is authorized to work with that card.The FFT process can function to close the loop of online payment byultimately requiring that the client confirm the transaction for it tooccur.

The FFP deterrent paradigm is able to provide advantages in a number ofnovel manners. Clients are able to actively play a role in theirvalidation process, for example, by allowing them to choose from orcustomize multiple authentication options rather than treating allclient's in a similar manner. By providing a sub-set of options basedupon the type of transaction which is occurring (e.g. the value of anitem; the fraud score of a transaction) the fraud deterrent options areappropriate for the transaction taking place. For example, the checkoutprocess for an item which cost $2.00 can be differentially implementedthat which occurs when the item is $200, based upon the rules of thetransaction profile. The FFP can adaptive and dynamically be applied tothe transaction process in a manner which empowers the client and inaccordance with a client's preferences. For example, a client who is ina hurray or who is not a good typist may prefer a voice and/or humanbased purchase, or may have access to a RFID and credit card, which canbe used to quickly validate a client's identity. Manufactures andclients are also empowered because they can require deterrent options tobe implemented in a graduated and unique manner according to particularcharacteristics of the transaction.

By permitting installation of the FFP on the client's computer, theclient can provide a rapid client profile to be built and subsequentlyrelied upon. Rather than decreasing purchases, the FFP should provide amuch more user friendly transaction for a wide assortment of e-basedtransactions. The FFP not only utilizes novel features, but allowstraditional fraud-deterring technologies to be used in a smarter manner.For example, the type of software license or software wrapper that isoffered to the client and/or distributed with a digital product may beselected by the FFT-server based upon a client's fraud score.Demonstration software, or particular versions of demonstrationsoftware, can only be offered to client's having a particular type ofhistorical e-transaction activity (e.g. a frequency shopper may beoffered demonstration software with more options enabled than a clientwith no software purchases in their FFT-history).

With respect to software purchases specifically, the FFT has particularadvantages. Software manufacturers have developed a number of strategiesin order to decrease financial loss due to fraudulent activity. Forexample, software license programs may be distributed with software andmay require periodic renewal. However, this may benefit the softwarecompany, but not the original seller of the software. For example, acustomer may originally decide not to pay for software but may thendecide, after illegally using the software for some time, that a“purchase”, “update” or “license renewal” is in order since the clienthas determined that the software is a valuable asset. The customer maynot purchase this latter software component from the same seller fromwhich the software was originally downloaded. While the manufacturerwill be paid for the software, the seller, who provided the initialdownload, does not realize revenue from this client's purchase or“renewal” of the item. The FFP architecture of the current inventionallows for fraud-free purchases to occur and focuses upon promotingvalid sales both during and subsequent to the e-commerce transaction.

While of particular benefit to the sale of software products, thecurrent invention can be easily applied to a wide number of e-commercetransactions, especially with respect to the selling of digital goodssuch as electronic media, multi-media, media-streaming, licensing,licensing renewals, licensing renewals related to dates, licensingrenewals related to number of uses, online access to goods, software,files, and services, logging in to a website; passwords, passwordactivations, password retrievals, and limited use software. E-commerceaccomplished using the principle advantages of the fraud deterrentsdescribed herein can be applied when the purchased items are distributedusing mail or real world delivery methods. Lastly, it should be obviousthat the fraud free transaction features and methods described hereincan be applied to e-transactions in general including online banking,security trading, and other activity where verification of a clientidentity and authentication of a client's intentions are importantfactors relating to both how and if the transaction is accomplished,disrupted, adjusted, or terminated.

The FFT implementation has a number of advantages over current practicesof e-commerce. First and foremost it provides the client with a numberof options for helping the seller to ensure that the client does notintend a fraudulent purchase. By providing a number of options, acompromise between the client and the seller, or client and the client'sbank, is reached. For example, a client may not be comfortableconducting part of the transaction over the phone, may not have accessto a web-camera, and may not wish to submit a biometric validationmarker. In this case, the FFT allows the client to choose or configurealternative FFT options which the seller or bank is comfortable.Although the seller may prefer a multi-media based transaction, ratherthan simply offering only a web-cam based transaction option, the usermay be allowed to choose 2 or 3 alternative deterrent options which theseller believes is functionally equivalent to the web-cam option, or atleast sufficient for permitting the particular e-transaction. In someembodiments, the FFT approach allows the clients to create FFT-basede-profiles, which are similar to community profiles of sites such as“e-bay” or allows increased security of sites such as “pay-pal”.However, unlike e-bay and pay-pal, the FFT based approach allows aclient centered, and multi-tiered anti-fraud system which can betailored according to the transaction profile and to a greater extent,the client's preferences. Further, in some instances, the FFT methodspermit the client to access or link their pay-pal accounts, e-bayprofiles, as part of the transaction process and FFT deterrent options.Services such as PayPal may also implement the FFT solution in order tofacilitate client's usage of their service. This has not been possiblein prior e-commerce methods, because client's have not been asked toactively participate in fraud-deterrence, for example, by installing adedicated software platform onto their personal computer.

The presently described embodiments of the fraud deterrent systems andmethods offer advantages over prior art. Although modifications andchanges may be suggested by those skilled in the art, it is theintention of the inventor to embody within the patent warranted hereinall changes and modifications as reasonably and properly come within thescope of their contribution to the art. All prior art cited, includinginternet address references, are incorporated by reference herein as ifrecited fully. The titles, headings, and subheadings provided in thisspecification are provided for organizational purposes only and are notmeant to restrict the invention in any way, nor to limit materialdescribed in one section from applying to another section as would beapparent to those skilled in the art.

What is claimed is:
 1. A method comprising: defining a conceptualpassword for accessing a secure account, the conceptual passworddefining one or more rules for selecting items from a set containingitems to which the rules are to be applied; receiving an access requestand responsively presenting the set; receiving selection of one or moreitems of the set; determine that the selection of items of the set iscomplete; determine if the selection of items satisfies the rule; andresponsive to the selection of items satisfying the rule, allow theaccess request to progress to a next stage.
 2. The method of claim 1,wherein at least one rule defines an order in which items from the setare to be selected for the selection of items to satisfy the rule. 3.The method of claim 1, wherein at least one rule defines acharacteristic to be possessed by selected items from the set for theselection of items to satisfy the rule.
 4. The method of claim 3,wherein the set includes images and the characteristic is acharacteristic of one or more images of the set.
 5. The method of claim3, wherein the set includes text and the characteristic is acharacteristic of one or more groups of text of the set.
 6. The methodof claim 3, wherein the set includes videos and the characteristic isone or more aspects represented in one or more of the videos of the set.7. The method of claim 3, wherein the set includes items defined by auser to whom the conceptual password applies.
 8. The method of claim 3,wherein the characteristic is an immutable characteristic of theselected items.
 9. The method of claim 3, wherein the characteristic isa subjective characteristic of the selected items, and wherein itemshaving the subjective characteristic are predefined in advance as atleast part of a predefined solution set.
 10. The method of claim 1,wherein the one or more rules are interrelated through use of Booleanoperators.
 11. A non-transitory computer readable storage medium storinginstructions that, when executed, cause a processor to perform a methodcomprising: defining a conceptual password for accessing a secureaccount, the conceptual password defining one or more rules forselecting items from a set containing items to which the rules are to beapplied; receiving an access request and responsively presenting theset; receiving selection of one or more items of the set; determine thatthe selection of items of the set is complete; determine if theselection of items satisfies the rule; and responsive to the selectionof items satisfying the rule, allow the access request to progress to anext stage.
 12. The storage medium of claim 11, wherein at least onerule defines an order in which items from the set are to be selected forthe selection of items to satisfy the rule.
 13. The storage medium ofclaim 11, wherein at least one rule defines a characteristic to bepossessed by selected items from the set for the selection of items tosatisfy the rule.
 14. The storage medium of claim 13, wherein the setincludes images and the characteristic is a characteristic of one ormore images of the set.
 15. The storage medium of claim 13, wherein theset includes text and the characteristic is a characteristic of one ormore groups of text of the set.
 16. The storage medium of claim 13,wherein the set includes videos and the characteristic is one or moreaspects represented in one or more of the videos of the set.
 17. Thestorage medium of claim 13, wherein the set includes items defined by auser to whom the conceptual password applies.
 18. The storage medium ofclaim 13, wherein the characteristic is an immutable characteristic ofthe selected items.
 19. The storage medium of claim 13, wherein thecharacteristic is a subjective characteristic of the selected items, andwherein items having the subjective characteristic are predefined inadvance as at least part of a predefined solution set.
 20. The storagemedium of claim 11, wherein the one or more rules are interrelatedthrough use of Boolean operators.
 21. A system comprising: one or moreprocessors configured to: receive and store definition of a conceptualpassword for accessing a secure account, the conceptual passworddefining one or more rules for selecting items from a set containingitems to which the rules are to be applied; receive an access requestand responsively present the set; receive selection of one or more itemsof the set; determine that the selection of items of the set iscomplete; determine if the selection of items satisfies the rule; andresponsive to the selection of items satisfying the rule, allow theaccess request to progress to a next stage.
 22. The system of claim 21,wherein at least one rule defines an order in which items from the setare to be selected for the selection of items to satisfy the rule. 23.The system of claim 21, wherein at least one rule defines acharacteristic to be possessed by selected items from the set for theselection of items to satisfy the rule.
 24. The system of claim 23,wherein the set includes images and the characteristic is acharacteristic of one or more images of the set.
 25. The system of claim23, wherein the set includes text and the characteristic is acharacteristic of one or more groups of text of the set.
 26. The systemof claim 23, wherein the set includes videos and the characteristic isone or more aspects represented in one or more of the videos of the set.27. The system of claim 23, wherein the set includes items defined by auser to whom the conceptual password applies.
 28. The system of claim23, wherein the characteristic is an immutable characteristic of theselected items.
 29. The system of claim 23, wherein the characteristicis a subjective characteristic of the selected items, and wherein itemshaving the subjective characteristic are predefined in advance as atleast part of a predefined solution set.
 30. A method comprising:defining a conceptual password for accessing a secure account, theconceptual password defining one or more rules for selecting items froma randomly generated sample set, including at least a plurality ofitems, less than all items within the set of items for the user-definedsolution set, containing items that comport with the one or more rules;receiving an access request and responsively presenting the set;receiving selection of one or more items of the set; determine that theselection of items of the set is complete; determine if the selection ofitems satisfies the rule; and responsive to the selection of itemssatisfying the rule, allow the access request to progress to a nextstage.